Currency in Nepal: what to use and how to exchange

The Nepalese rupee is issued by Nepal Rastra Bank. It is pegged to the Indian rupee at 1.6 NPR to 1 INR, so the two move together against the dollar, euro and pound. That peg is why Indian rupee notes turn up in change in border towns and in Kathmandu, though they are not the official currency for everyday pricing.

For a first trip, plan on cash as your main tool outside hotels. Kathmandu and Pokhara have banks, licensed exchange counters and ATMs, but once you leave the cities — on the Annapurna or Everest trails, in Bandipur, or on long bus routes — cash is the only reliable option. Budget for trekking separately from city spending; see the country budget page for daily ranges.

Exchange rates at Kathmandu's Tribhuvan airport counters are usually worse than in the city. If you land late, change a small amount for the taxi and the first night, then use a bank or licensed counter the next morning. Hotels will change money but often at a poorer rate. Always count your notes before leaving the counter and ask for a receipt.

US dollars, euros and pounds sterling are the easiest foreign currencies to change. Bring clean, unmarked, newer-series notes: torn, heavily written-on or old-series bills are often refused or given a lower rate. Keep some dollar notes aside for trekking permits and park fees, which are sometimes quoted in USD.

Cards are useful for hotels, some restaurants and larger shops in Kathmandu and Pokhara, but expect a surcharge at smaller places. ATMs in cities generally accept foreign Visa and Mastercard; limits per withdrawal and per day vary by bank, so take out larger amounts less often to reduce fees. Notify your bank before you travel and carry a second card in case one is blocked.

Tipping is expected for guides and porters, usually 10–15% of the trek cost, and rounding up is normal elsewhere. Keep a stack of Rs 20, 50 and 100 notes for this. The country money and tipping page covers the detail.