The flu was detected in poultry in Matigarha, Siliguri which is some 13 kilometers from Kakarbhitta near Nepal-India border. The ban will remain in place until further notice.
Officials from ministry of Agriculture and Co-operatives on Monday asked people to avoid poultry products from India and remain on alert.
Although bird flu had been detected in both India and China in the past, Nepal has so far remained safe.
Detecting bird flu