Ask what Nepal's currency is, and most people will simply say "rupees" — and they wouldn't be wrong. But the story behind the Nepalese Rupee is a little more layered: it's a currency managed entirely by Nepal's own central bank, yet tied by a fixed exchange rate to its much larger neighbour, India, in a relationship that dates back over three decades.
Issuance and the Indian Peg
Nepal Rastra Bank, established in 1956, is the sole authority responsible for issuing banknotes and coins and for setting monetary policy in Nepal. Unlike most central banks, however, Nepal Rastra Bank does not set interest rates or currency value entirely independently — because the Nepalese Rupee has been pegged to the Indian Rupee at a fixed rate since 1993.
Two currencies, one fixed rate
Legal tender across Nepal, issued by Nepal Rastra Bank in banknotes and coins.
A fixed exchange rate maintained since 1993, meaning 1 Indian Rupee equals 1.6 Nepalese Rupees.
This peg keeps the two currencies moving in lockstep and, in practice, means Indian Rupee notes up to a certain denomination circulate informally alongside Nepalese Rupees in many border areas — though the Indian rupee is not legal tender in Nepal and larger Indian notes are officially restricted.
Source: Nepal Rastra Bank
How the Rupee Came to Be
Nepal's older silver coinage was the mohar (also spelled mohru). In 1932 the rupee replaced the silver mohar, at two mohar to one rupee, and the rupee has been the country's unit of account ever since.
Nepal Rastra Bank's founding in 1956 marked the turning point for modern currency management, centralising note issuance under one institution and setting the stage for the decimal system in use today, where 1 rupee divides into 100 paisa.
Symbol, Denominations and Everyday Use
The Nepalese Rupee is commonly abbreviated as Rs or NPR, and written in Devanagari as रु, which distinguishes it from the near-identical Indian Rupee symbol ₹. Coins are issued in smaller denominations for everyday transactions, while banknotes carry national landmarks and symbols alongside security features.
Cash remains widely used across Nepal, though digital payment platforms and mobile wallets have grown quickly in urban centres, running alongside — rather than replacing — traditional rupee notes and coins.
✦ Did you know?
- Nepal issued a commemorative Rs 250 banknote in 1997 for the Silver Jubilee of King Birendra.
- The current banknote series, first issued in 2012, is known as the Mount Everest series.
- The Indian rupee is not legal tender in Nepal, despite the fixed exchange peg between the two currencies.
Common Banknote Denominations
Nepal Rastra Bank issues banknotes across a standard range of denominations, each featuring imagery of Nepal's landmarks and natural heritage.
| Denomination | Current series issued |
|---|---|
| Rs 5 | 2012, 2017 |
| Rs 10 | 2012, 2017 |
| Rs 20 | 2012, 2016 |
| Rs 50 | 2012, 2015 |
| Rs 100 | 2012, 2015 |
| Rs 500 | 2012, 2016 |
| Rs 1000 | 2013, 2019 |
Source: Nepal Rastra Bank
Frequently Asked Questions
What is the national currency of Nepal?
The Nepalese Rupee, abbreviated NPR and symbolised as रु or Rs, is Nepal's official currency. It is issued and regulated by Nepal Rastra Bank, the country's central bank.
Is the Nepalese Rupee pegged to another currency?
Yes. The Nepalese Rupee has been pegged to the Indian Rupee since 1993 at a fixed rate of 160 Nepalese Rupees to 100 Indian Rupees, meaning 1 Indian Rupee equals 1.6 Nepalese Rupees.
Who issues currency in Nepal?
Nepal Rastra Bank, established in 1956, is the sole authority responsible for issuing banknotes and coins and regulating monetary policy in Nepal.
What denominations of Nepalese currency exist?
Nepalese Rupee banknotes are commonly issued in denominations of 5, 10, 20, 50, 100, 500 and 1000 rupees, alongside coins in smaller denominations, with occasional commemorative notes issued for special anniversaries.
What symbol is used for the Nepalese Rupee?
The Nepalese Rupee is commonly abbreviated as Rs or NPR, and written in Devanagari as रु, distinguishing it from the Indian Rupee symbol ₹.
How many paisa are in a Nepalese rupee?
One rupee is divided into 100 paisa.
What did the Nepalese rupee replace?
The rupee replaced the silver mohar in 1932.