Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No.19 / 2010-Customs
159-A, North Block,
New Delhi – 110001
13th July, 2010
To
All Chief Commissioners of Customs
All Chief Commissioners of Customs (Prev).
All Commissioners of Customs (Airport).
All Commissioners of Customs (Port).
All Commissioners of Customs & Central Excise.
Subject: Display at Airports / LCS about prohibition of import / export of
Indian currency notes of denomination of above Rs.100 in India and in Nepal –
regarding
Sir / Madam,
As you may be aware, the export and import of currency notes of Government of
India and Reserve Bank of India notes (other than notes of denominations of
above Rs.100 in either case) is not allowed to and from Nepal and Bhutan in
terms of
Notification No. FEMA 6 / RB-2000 dated 3.5.2000 issued under Foreign
Exchange Management (Export and Import of Currency) Regulations, 2000 by the
Reserve Bank of India. Similarly, the Indian currency notes in the denomination
of Rs.1000 and Rs.500 are not permissible for exchange for banking transaction
in Nepal in terms of guidelines issued by Ministry of Finance, Government of
Nepal and Nepal Rashtra Bank. In fact, the current legal provisions in Nepal
provide that notes of these denominations are liable for seizure and the persons
carrying them are to be fined or imprisoned for upto three years.
- 2. Instances have come to the notice of the Board that many Indian nationals
travelling to Nepal by Air or by land routes and carrying Indian currency notes
of Rs.500 and Rs.1000 denomination primarily due to ignorance of the law, are
not only violating the RBI regulations issued in this regard but also get
entangled in legal proceedings for possession of these notes in Nepal, like
criminal prosecution along with confiscation of such currency notes.
- The matter has been examined in the Board. In order to check such illegal
import / export of currency notes of denomination of above Rs.100 and to prevent
harassment and avoidable legal issues, it is felt necessary to educate /
sensitize the people travelling between Nepal and India through Air or land
routes regarding aforementioned legal provisions. Accordingly, since the import
and export of Indian currency notes of denomination of above Rs.100/- (in either
case) is prohibited as per Indian law and the use of Indian currency notes of
denomination of Rs.500 and Rs.1000 is also prohibited in Nepal, Board hereby
desires that at prominent places at the Airports and Land Customs Stations in
India from where the passengers depart, to put up a display / notice board
mentioning that “Import / export of Indian currency notes of the denomination of
above Rs.100 from / to Nepal is prohibited and would attract penal provisions.
The use of such currency notes of the denomination of Rs.1000 and Rs.500 is also
prohibited in Nepal. Therefore, these notes are liable to be seized and the
persons carrying them are liable to be fined or imprisoned for upto three years
in Nepal.”
- The concerned airlines can also be requested to sensitize the passengers at
the time of departure by displaying such advisory at their Check-in Counters.
Yours faithfully,
( R. P. Singh )
Director (Customs)
F.No.520/23/2010-Cus.VI