Nepal is a breathtaking travel destination with Himalayan trekking routes, ancient temples, and vibrant cities like Kathmandu and Pokhara. However, understanding the currency system and payment methods is crucial for a smooth trip. Since Nepal is still a cash-dominated economy, travellers should prepare accordingly.
This guide covers Nepalese currency, exchange rates, ATM withdrawals, digital payments, and essential money tips for travellers.
Nepalese Currency: An Overview
The official currency of Nepal is the Nepalese Rupee (NPR), issued by the Nepal Rastra Bank (NRB). It is abbreviated as Rs or NPR, and it is the only legal tender in Nepal.
Nepalese Currency Denominations
- Banknotes: Rs 1, Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500, and Rs 1000.
- Coins: 1, 2, 5, and 10 Rupees (used for small transactions).
Tip: Rs 500 and Rs 1000 notes are useful for large purchases, while Rs 20, Rs 50, and Rs 100 are better for small payments in local markets.
Exchange Rates in Nepal
The value of the Nepalese Rupee (NPR) fluctuates daily, except for the Indian Rupee (INR), which has a fixed exchange rate:
- 1 INR = 1.60 NPR (Indian Rs 500 and Rs 2000 notes are not accepted in Nepal).
- Exchange rates for USD, EUR, GBP, and AUD vary, so always check with Nepal Rastra Bank’s website or money exchangers.
Tip: Always check current rates before exchanging money to get the best deal.
Where to Exchange Foreign Currency in Nepal?
You can exchange USD, EUR, GBP, AUD, and INR at various locations:
Banks
- Offer the most secure and official exchange rates.
- Require passport identification for transactions.
- Best banks for exchange: Standard Chartered Bank, Himalayan Bank, Nabil Bank.
Authorized Money Exchange Counters
- Found in Kathmandu (Thamel), Pokhara, and major tourist areas.
- Exchange rates may be slightly lower than banks, but they are convenient.
Hotels and Travel Agencies
- Many hotels and tour operators exchange money, but the rates are usually less favorable.
Tribhuvan International Airport (TIA) Currency Exchange
- Available upon arrival in Kathmandu.
- Rates are lower, and service fees may be higher.
Tip: Avoid street money changers offering "too good to be true" exchange rates, as scams are common.
ATMs in Nepal: Availability and Withdrawal Limits
ATMs are widely available in Kathmandu, Pokhara, and other major cities but can be scarce in remote trekking areas. Most Nepalese ATMs accept international debit and credit cards (Visa, Mastercard, and sometimes American Express).
ATM Withdrawal Limits and Fees for Foreign Cards
- Per transaction limit: Rs 10,000 - Rs 35,000 (~$75 - $250).
- Per day limit: Rs 100,000 (~$750), depending on the bank.
- Foreign card fees: Rs 500 - Rs 800 ($3 - $6) per withdrawal.
Best ATMs for International Travelers
- Standard Chartered Bank – Higher withdrawal limits.
- Nabil Bank – Good coverage, accepts Visa/Mastercard.
- Global IME Bank – Reliable, but charges Rs 750 per withdrawal.
- NIC Asia Bank – Fewer fees, but limited availability.
Tip: Some ATMs may not work with foreign cards, so carry backup cash and try different machines if one fails.
Credit and Debit Card Usage in Nepal
While credit and debit cards (Visa, Mastercard, American Express) are accepted in major hotels, restaurants, and malls, cash is preferred in most places.
Where Cards Are Accepted
- Large hotels, restaurants, and malls in Kathmandu and Pokhara.
- High-end souvenir shops and trekking gear stores.
- Local tea houses, trekking lodges, and small businesses mostly accept cash only.
Card Payment Fees
- Many businesses charge an extra 3-4% fee for credit card payments.
- American Express is less accepted as compared to Visa and Mastercard.
Tip: Always carry backup cash, as card machines may not always work due to power outages.
Digital Payments and Mobile Wallets in Nepal
While Nepal is still a cash-based economy, digital payments are growing in popularity. Mobile wallets and online payment systems are mostly used by locals but may not be widely accepted in tourist areas.
Popular Digital Payment Methods in Nepal
- eSewa – Nepal’s leading mobile wallet
- Khalti – Used for online transactions and bill payments
- IME Pay – Digital payment and remittance service
- Fonepay – Nepal’s largest QR payment network
Tip: Most digital wallets require a Nepalese phone number and local bank account, making them less convenient for international travelers.
Best Travel Money Tips for Nepal
- Always Carry Cash: ATMs are not available in remote areas, so always carry enough cash, especially when trekking.
- Exchange Money at Banks or Authorized Money Changers: Avoid black-market exchanges as they are illegal and risky.
- Avoid Large INR Notes: Indian Rs 500 and Rs 2000 notes are not accepted in Nepal.
- Use Large Notes for Big Purchases: Small vendors may not have enough change for Rs 1000 notes.
- Keep Emergency Cash: In case of ATM failure or network issues, have extra cash in USD or NPR.
- Withdraw Large Amounts at Once: Minimize ATM fees by withdrawing the maximum limit per transaction.
Final Thoughts
Understanding currency exchange, payment methods, and travel money tips in Nepal will help you avoid unnecessary fees and enjoy a hassle-free trip. Whether you use cash, ATMs, or digital wallets, having the right financial strategy will ensure a smooth travel experience in Nepal.
Plan, keep emergency cash, and enjoy your adventure in Nepal without financial stress!