The official currency of Nepal is the Nepalese rupee (ISO code NPR), written locally as रू and abbreviated as Rs. As of 2026, one US dollar buys roughly 133 Nepalese rupees. The rupee is the only legal tender across the country, issued and managed by Nepal Rastra Bank, the central bank, and it remains overwhelmingly a cash-based currency in everyday life — especially once you step outside Kathmandu and Pokhara.
The Nepalese rupee at a glance
The Nepalese rupee is subdivided into 100 paisa, though paisa coins have almost entirely vanished from circulation because they are worth so little. The currency is issued by Nepal Rastra Bank, founded in 1956, which controls the money supply, sets monetary policy, prints banknotes, and manages the country's foreign exchange reserves. In day-to-day speech Nepalis simply say rupaiya, and prices on menus, fares, and shop signs are written in figures preceded by "Rs".
A defining feature of the rupee is that it is pegged to the Indian rupee at a fixed rate of 1.6 NPR to 1 INR, a peg in place since 1993. This means that whenever the Indian rupee moves against the US dollar or other currencies, the Nepalese rupee moves with it. The peg reflects the deep economic relationship between the two neighbours: India is by far Nepal's largest trading partner, and the long open border between them sees enormous flows of goods, labour, and remittances.
Key Facts
- Currency name: Nepalese rupee
- ISO 4217 code: NPR
- Symbol: Rs or रू
- Subunit: 100 paisa (rarely used today)
- Issuing authority: Nepal Rastra Bank (established 1956)
- Peg: Fixed at 1.6 NPR per 1 Indian rupee since 1993
- Approximate rate (2026): about 133 NPR per 1 US dollar
Banknotes and coins in circulation
Nepalese banknotes are issued in several denominations, each with a distinctive dominant colour so users can tell them apart quickly:
- Rs 1,000 — the highest common denomination, typically blue
- Rs 500 — brown to orange tones
- Rs 100 — green
- Rs 50 — blue or purple
- Rs 20 — orange
- Rs 10 — brown
- Rs 5 — a smaller, lower-value note
The notes are richly illustrated with national symbols. Mount Everest, the highest point on Earth at 8,849 metres, appears on several banknotes, alongside other Himalayan scenery, historic temples, and protected wildlife such as the one-horned rhinoceros and the Bengal tiger. All modern notes also carry the national emblem and the signature of the Nepal Rastra Bank governor. Coins still exist in low denominations such as 1 and 2 rupees, but in practice traders round prices to the nearest note, and genuine small change can be hard to find.
A short history of Nepal's money
Nepal has a long monetary tradition. Centuries ago, the Malla kings minted silver coins known as mohar, which circulated throughout the Kathmandu Valley and were even used in trade with Tibet. The modern rupee system was introduced in 1932 under the title mohru, gradually replacing the older mohar-based coinage. Banknotes followed later in the twentieth century once a formal central banking system had developed.
The creation of Nepal Rastra Bank in 1956 gave the country a single authority to issue and regulate currency, replacing a patchwork of older coins and Indian money that had long circulated freely. Over the following decades the rupee was tied ever more closely to India's economy, culminating in the fixed peg adopted in 1993. Because of that peg and Nepal's capital controls, the Nepalese rupee is not freely traded or fully convertible on international currency markets — you generally cannot buy or sell it outside the region, which is why travellers should plan to change money on arrival and spend it before leaving.
Why the rupee is pegged to India
Understanding the peg explains a great deal about money in Nepal. A landlocked Himalayan nation, Nepal depends on India for the bulk of its imports — fuel, vehicles, machinery, and a large share of consumer goods all arrive across the southern border. By fixing the exchange rate, Nepal Rastra Bank gives importers and exporters predictable prices and imports a measure of monetary stability from the much larger Indian economy.
The trade-off is that Nepal gives up independent control over its currency's external value. When the Indian rupee weakens against the dollar, so does the Nepalese rupee, regardless of conditions inside Nepal itself. The system is supported by Nepal's substantial foreign exchange reserves, which are bolstered by remittances sent home by millions of Nepalis working abroad — one of the country's most important sources of foreign currency.
Using money as a traveller in Nepal
Nepal runs largely on cash, particularly once you leave the main hubs of Kathmandu and Pokhara. ATMs are common in cities and tourist areas and accept international Visa and Mastercard, but withdrawal limits are modest and machines can run empty or go offline, so it is wise not to rely on them exclusively. Card payment is accepted at upscale hotels, larger restaurants, and trekking agencies, but small guesthouses, teahouses, taxis, and shops expect cash.
For exchanging money, bring clean, undamaged US dollars or euros, which licensed money changers in Thamel and other tourist districts will swap readily. Indian rupee notes of Rs 100 and below are also accepted in much of Nepal, though high-denomination Indian notes are not. Always ask for a receipt when changing money, and compare a few counters, since rates vary slightly.
Trekkers heading into the mountains should withdraw and carry enough cash before setting off, because banking facilities along routes such as the Everest Base Camp and Annapurna trails are sparse and charge steep premiums. Keep a stock of small notes handy, since change for Rs 1,000 bills is frequently unavailable in teahouses and small shops. Mobile wallets and QR-code payments are growing fast in urban Nepal, but for visitors cash remains the most dependable option nationwide.
Frequently Asked Questions
What is the currency symbol for the Nepalese rupee?
The Nepalese rupee is shown with the abbreviation Rs or the Devanagari symbol रू. The ISO 4217 code used in banking and exchange listings is NPR.
Can I use Indian rupees in Nepal?
Yes, but only the smaller denominations. Indian rupee notes of Rs 100 and below are widely accepted because the two currencies are pegged. Larger Indian notes are generally refused and should be exchanged for Nepalese rupees.
Is the Nepalese rupee tied to any other currency?
Yes. The Nepalese rupee is pegged to the Indian rupee at a fixed rate of 1.6 NPR per 1 INR. As a result, its value against the US dollar tracks the Indian rupee rather than moving independently.
Should I bring cash or rely on cards in Nepal?
Bring cash. While cities have ATMs and some businesses take cards, Nepal is predominantly a cash economy, especially in rural areas and on trekking routes where banking is limited or absent.
To explore more about this Himalayan nation's geography, economy, and culture, see our full nepal country guide.