The ruling maoist party has forced cinema owners to stop screening Indian releases, reports PTI.
"Fifty cinema halls, which were showing Hindi films, stopped screening Indian movies from Monday," said Raj Kumar Rai, chairman of the Nepal Film Producers Association.
CPN-Maoist leader Mohan Vaidya is reported to have said that Bollywood is spreading "hatred against Nepal".
Demonstrators are demanding that more Nepali films are screened in the country.
"We want the government to regularise the screening of foreign films so as to encourage the indigenously made films," added Rai.