Money Exchange Kathmandu, Nepal

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Researching Currency in Nepal

When planning your trip to Nepal—whether for trekking the Himalayas, exploring Kathmandu, or tackling the Everest Base Camp trail—it’s essential to understand the local currency. Knowing how to access, use, and manage your money will make your travels smoother and safer.

Currency of Nepal

Official Currency: Nepalese Rupee (NPR)
Symbol: Rs or रू
Subunit: 1 Rupee = 100 Paisa

The Nepalese Rupee, introduced in 1932, replaced the silver mohar at a rate of 2:1 and standardized the country’s currency under the Nepal Rastra Bank. Originally known as the Mohru, it brought Nepal in line with international norms through a decimal system and centralized issuance.

To stabilize its value, the Nepal Rastra Bank pegged the NPR to the Indian Rupee, reducing fluctuations and inflation. The exchange rate now experiences small daily changes like most global currencies. Use reliable tools like xe.com or its mobile app to check current rates.

Denominations

  • Coins: Rs 1, 2, 5, 10 (paisa coins are rarely used)

  • Banknotes: Rs 1, 2, 5, 10, 20, 25, 50, 100, 250, 500, and 1,000

Since Nepal became a republic in 2008, banknotes have featured Mount Everest and national symbols. Each denomination differs in color and size to assist visually impaired users.

Paying in Nepal

Cash is the dominant form of payment throughout Nepal, especially in rural areas. However, cards are increasingly accepted in major hotels, restaurants, and shops—though typically with an added 4–10% fee.

In rural or mountainous regions, card facilities are rare, so always carry enough cash in small denominations before traveling.

Recommended Payment Strategy

  • Use cash for most purchases to avoid high transaction fees.

  • Keep Visa and Mastercard for emergencies or larger expenses.

  • Withdraw cash in smaller amounts as needed for safety and budgeting.

Shopping, Tipping, and Haggling

In Nepal’s local markets—selling souvenirs, crafts, or clothing—bargaining is common. Keep negotiations polite and good-natured. Avoid unreasonably low offers, as a small difference to you might significantly affect the vendor’s earnings.

Tipping Guidelines

  • Restaurants: Larger establishments often include a 10% service charge.

  • Smaller cafés or teahouses: Tipping 5–10% is customary and appreciated.

Currency Exchange in Nepal

Because the Nepalese Rupee is a closed currency, you cannot obtain it outside Nepal. You’ll need to exchange money or withdraw cash after arrival.

Where to Exchange Currency

1. Banks
Major banks such as Nepal Rastra Bank, Nabil Bank, and Himalayan Bank provide official exchange services. Expect formalities such as filling out forms and presenting ID.

2. Authorized Money Changers
Licensed exchange counters are common in Kathmandu, Pokhara, and other tourist areas. They offer competitive rates and faster service than banks, but slightly lower rates overall.

3. Airports
Currency exchange counters at Tribhuvan International Airport (Kathmandu) are convenient for small amounts, but rates are generally less favorable.

Withdrawing Cash in Nepal

ATMs:
Available in major cities like Kathmandu and Pokhara, ATMs accept Visa, Mastercard, and international cards. Expect withdrawal limits between NPR 10,000–35,000 per transaction, with fees of NPR 400–500. Machines can be unreliable, so use ATM lounges with multiple units.

Banks:
For larger withdrawals, you can visit a bank counter with your passport and card. Be prepared for paperwork and longer processing times.

Exchange Counters:
Some money changers also allow withdrawals using cards, though with higher fees—best reserved for emergencies.

Final Thoughts on Money in Nepal

Understanding Nepal’s currency system before your trip will save time and reduce stress. Cash remains essential, especially in rural regions and on treks.

While ATMs are available, they often offer poorer exchange rates compared to cash exchanges at banks or money changers. Factoring in ATM fees, foreign bank charges, and exchange rate margins, bringing foreign cash to exchange locally is often the most cost-effective option.

For expert guidance on travelling and trekking in Nepal, Kandoo offers advice on money, safety, and trip planning to ensure a smooth and unforgettable adventure.

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