Nepalese Rupee (NPR)

Overview

The Nepalese rupee (NPR) is the national currency of Nepal, issued and regulated by the Nepal Rastra Bank. The common symbol is Rs (occasionally Rp). The rupee is subdivided into 100 paisa.

History and peg to the Indian rupee

The NPR replaced the Nepalese mohar in 1932. In 1993 Nepal introduced increased convertibility and formally pegged the NPR to the Indian rupee (INR) at a fixed rate equivalent to 1 INR = 1.6 NPR. This peg guides Nepal’s exchange-rate policy and trade settlements with India.

Denominations

Coins
– Paisa: 1, 5, 10, 25, 50 paisa
– Rupee coins: 1, 2, 5, 10 rupees

Banknotes
– 1, 2, 5, 10, 20, 50, 100, 500, 1,000 rupee notes

Exchanging NPR

There are three exchange-rate channels commonly observed in Nepal:
– Official central-bank rate
– Legal private-bank and authorized forex services
– Unofficial black-market rate

Black-market rates are often more favorable than legal rates, and some local commerce uses those rates. Tourists typically transact with banks, authorized money-changers, or airport forex services and therefore receive less favorable (legal) rates. Because legal ambiguities can arise, keep receipts for all currency-exchange transactions to document that an authorized provider was used.

Nepal’s economy and the NPR

• Long-term growth: Nepal has averaged modest economic growth over past decades, with fluctuations in recent years.
• Inflation: Inflation has varied, with periods of higher inflation historically and lower, more stable rates in recent years.
• Currency trend: The NPR has depreciated versus the U.S. dollar over recent decades, reflecting exchange-rate dynamics, domestic inflation, and external factors.

Practical points

• The Nepalese rupee is a distinct currency from the Indian rupee, even though it is pegged to the INR.
• Carry small-denomination notes and coins for local purchases and transport.
• Use authorized banks and money-changers when possible; retain exchange receipts.
• Expect different rates at airports, banks, and informal exchangers.

Bottom line

The NPR is Nepal’s official currency, organized into rupees and paisa, and managed by the Nepal Rastra Bank. Its peg to the Indian rupee influences monetary policy and trade, while multiple exchange-rate channels (official, private, and black market) affect how travelers and businesses obtain and use NPR.