Nepal's central bank has announced the ban of Indian currency notes with denominations above Rs 100.

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The Nepal Rastra Bank (NRB) on Sunday issued a circular for the institutions licensed by it notifying them about the ban, reports Xinhua news agency. 

Nepal's cabinet in December had decided to ban the use of these currency notes. 

The decision to ban these notes has come a time when the NRB has requested the Reserve Bank of India (RBI) arequesting the latter to allow Nepal to use currency notes with all denominations.

Currently, only the notes with a denomination of Rs 100 and below are freely exchangeable in Nepal.