At a time when Nepal is promoting Indian tourists, Nepal’s government recent decision to ban Indian currency will badly affect Indian tourist arrival in Nepal.

The Nepal government has banned the use of Indian currency notes of Rs 2000, Rs 500 and Rs 200. The government has asked the citizens to abstain from keeping or carrying Indian currencies higher than Rs 100 which cease to be legal tender.

Lawyers argue that Nepal cannot declare currency illegal. Of course the government can call currency transactions illegal. How can we say other’s country’s property illegal?

Now on the Indian currency of Rs.2000,Rs.1000 and Rs.500 is no difference than Cambodian, Laotian or Nigerian currency and Indian currency in transaction.

Nepal cannot ban Indian currency but Nepal can restrict the transaction of Indian currency of Rs.500.

According to Nepal's Information and Broadcasting Minister Gokul Prasad Baskota, the government has informed the public about the new decision of banning Indian currency notes above Rs 100.

As many as 2,60,124 Indian tourists have visited Nepal in the last 10 months, taking the number of tourists visiting the neighboring country to a whopping one million.

"Whenever tourists from India visit Nepal, they want to spend money here. Nepal government should have looked into all the aspects before making such a decision that will affect both tourism and economic growth of Nepal. This will only curtail the growth of Nepal as people from India will refuse to come to the country."

He further added that both the Indian government and the Nepal government talk about the smooth relationship they share with each other, but decisions like this can have a counter effect on both the countries.

The decision was taken in a cabinet meeting on December 10 following which a notice was issued asking the Nepalese citizens not to keep or transact in those banknotes. With this decision, Nepali citizens are only allowed to carry or make transactions using Rs 100 Indian banknotes.