The Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations, a move that could affect Indian tourists visiting the Himalayan nation where Indian currency is widely used.

Indian currency is extensively used by Nepalese people and businesses for their savings and transactions. The government has asked the people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalised them, Nepal's Minister for Information and Communications Gokul Prasad Baskota said on Friday.