New Delhi (Sputnik) — The Nepali government has called on its people to refrain from keeping or carrying Indian bank notes higher than Rs 100.

READ MORE: Bhutan Asks Its Citizens to Deal Less in Indian Currency

The decision was announced by Nepali government spokesperson and Minister for Information and Communication Mr. Gokul Prasad Baskota.

© AFP 2018 / INDRANIL MUKHERJEE

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The decision to ban Indian currency notes of Rs 200, Rs 500 and Rs 2,000 denominations was made in a Nepalese cabinet meeting on Thursday.The ban is likely to impact Nepalese labourers working in India and Indian tourists visiting Nepal.

In 2016, the Indian government had banned currency notes of Rs 500 and Rs 1,000 denominations as part of its demonetisation drive and printed new notes of Rs 500 and Rs 2,000. According to some estimates, a huge amount of banned Indian currency notes of Rs 500 and Rs 1,000 denominations are currently lying in Nepal.

READ MORE: Setback for Nepal, Bhutan as India Says It Won’t Take Back Demonetized Currency

Indian government sources told Sputnik that the decision to ban Indian currency notes above Rs 100 was taken by Nepal at India’s request with a view to curbing fake Indian currency notes (FICN).

Although the Indian government’s demonetisation drive in 2016 had hit the fake currency notes rackets, it has picked up again.

Recently, Indian intelligence agencies got inputs that fake currency notes are being pumped into India from Nepal, as the border between the two countries is porous, added the source.