Raxaul, Sept. 12: Customs has imposed a blanket ban on free movement of Indian currency of higher denomination to Nepal to check cross-border smuggling of narcotics and firearms.

According to sources, Indian currency notes in the denominations of 500 and 1,000 are used while smuggling the banned articles across the frontier. However, there would be no ban on carrying Indian currency notes in the denomination of 100.

“The guidelines of Reserve Bank of India and Foreign Exchange Management Act do not restrict free movement of Indian currency of higher denominations either in Nepal or Bhutan. But the ban order has been enforced with effect from Tuesday because of the vulnerability of the India-Nepal border,” customs assistant commissioner G.C. Yadav said.

“The ban was necessitated after a huge consignment of fake Indian currency notes with a face value of Rs 9.68 lakh was seized and two persons caught by a team of economic offence wing at Chhatauni bus stand in Motihari on Monday. A team of Delhi crime branch personnel on Tuesday carried out raids at various places in and around Raxaul bordering Nepal and nabbed six persons with fake Indian currency notes. Institutional transaction of currency is beyond the purview of the ban,” he added.