Nepal has its own unique monetary system and payment culture. The official currency of Nepal is the Nepalese Rupee (NPR). It is issued and regulated by the Nepal Rastra Bank (NRB), the country's central bank. The rupee is subdivided into 100 paisa, though due to inflation, paisa coins are rarely used in daily transactions. Banknotes come in denominations of 5, 10, 20, 50, 100, 500, and 1,000 rupees, while coins are available in 1 and 2 rupees.
Foreign currencies, particularly the Indian Rupee (INR), are also widely accepted in Nepal, especially in border areas and tourist hubs. However, the exchange of Indian currency notes of ₹500 and ₹2,000 denominations is restricted due to regulations by the Nepal Rastra Bank. Foreign visitors are required to exchange their money into Nepalese rupees, which can be done at banks, authorized money changers, or hotels, though exchange rates may vary.
Cash Dominance in Daily Transactions
Despite global trends toward digital payments, Nepal remains a cash-driven economy. Small businesses, street vendors, and rural markets primarily rely on cash transactions. Even in urban areas, many shops and service providers prefer cash payments, though digital options are gradually gaining popularity. Carrying smaller denominations is advisable, as vendors often struggle to provide change for larger bills, especially in remote areas.
Digital Payments on the Rise
In recent years, Nepal has seen significant growth in digital payment systems. Mobile wallets like eSewa, Khalti, and IME Pay are widely used for utility bills, online shopping, and even peer-to-peer transfers. Banks also offer internet and mobile banking services, allowing users to pay for services, transfer money, and manage accounts digitally. Additionally, QR code-based payments are becoming common in restaurants, retail stores, and transportation services.
Credit & Debit Card Usage
Credit and debit cards are accepted in upscale hotels, restaurants, and shopping centers, particularly in Kathmandu, Pokhara, and other tourist destinations. Visa and MasterCard are the most widely recognized, though American Express and other international cards may face limited acceptance. ATMs are widely available in cities, dispensing Nepalese rupees, but foreign cardholders should be aware of withdrawal fees and daily limits. Some ATMs may not accept foreign cards, so it is advisable to carry sufficient cash when traveling outside major cities.
Remittances & Foreign Exchange
Remittances from Nepalese working abroad contribute significantly to the country’s economy. Services like Western Union, MoneyGram, and local transfer agencies facilitate easy money transfers. The government has also encouraged formal channels for remittances to boost foreign reserves. Tourists and expatriates can exchange foreign currency at banks and licensed exchange counters, but exchanging money through unauthorized dealers is illegal and risky.
Challenges & Future Trends
While digital payments are growing, challenges such as limited internet access in rural areas, low financial literacy, and trust issues hinder widespread adoption. The government and financial institutions are promoting cashless transactions through policies and awareness campaigns. With increasing smartphone penetration and fintech innovations, Nepal is slowly transitioning toward a more digital economy, though cash will likely remain dominant in the near future.
For travelers, carrying a mix of cash and using digital payment options where possible is the most practical approach. Understanding Nepal’s currency and payment landscape ensures smooth financial transactions, whether for daily expenses, shopping, or exploring the country’s breathtaking landscapes.
Payment While Trekking in Nepal
Due to the lack of banking facilities and limited connectivity in the Himalayas, managing money during a trek requires careful planning. In Nepal’s trekking regions, cash (Nepalese rupees) is the primary mode of payment. Teahouses, small shops, and local vendors in mountain areas do not accept credit/debit cards or digital payments. Even if some places claim to accept cards, unreliable electricity and internet make cash the safest option.
How much cash to carry? This depends on your trek duration and spending habits. On average, budget NPR 3,000–5,000 (approx. 25–40) per day for meals, water, snacks, and small expenses.
Where to get cash? Withdraw enough rupees in Kathmandu or Pokhara before starting your trek. ATMs are scarce in mountain towns, and those available may run out of cash or charge high fees.
By planning ahead and carrying sufficient cash, you will avoid payment hassles and enjoy a smooth trekking experience in Nepal’s majestic mountains.
