Unaware of his identity, Nagaland Home Minister Imkong Inchen was briefly detained by the Nepalese police at the airport in Kathmandu on Wednesday for flouting a currency ban, in an embarrassment for India.
Inchen, on a private visit in Kathmandu with his family was found carrying Rs 900,000 in cash with him, with most of the notes of 1000 and 500 denomination, which are banned, police said.
Possession of high denomination currency notes is a penal offence in Nepal and the offenders can face jail terms up to five years or hefty fines.
The minister told the police that he was not aware of the ban.
The minister missed his Jet Airways flight and official sources said he would return to the Indian capital in the afternoon as police did not press charges against him.
Inchen was detained for questioning when he arrived at the airport at 0900 hours to catch a flight to Delhi after attending a marriage function in Kathmandu, Indian embassy sources said.
The sources said it was normal procedure to question people carrying big denomination notes as these are banned in Nepal.
It was only after his questioning that he revealed his identity.