Traveling to Nepal is a unique experience, with its rich culture, natural beauty, and the majestic Himalayas. One key aspect of a smooth travel experience here involves handling currency payments while travelling in Nepal. This guide covers everything you need to know about currency exchange rates, cash payments, and credit card acceptance to ensure a hassle-free journey. Let’s dive in to explore how best to manage your money, avoid high exchange fees, and make the most of your currency.

Understanding the Nepalese Rupee (NPR)

Overview of Nepal’s Currency System

Nepal’s official currency is the Nepalese Rupee (NPR). Denoted as NPR or simply Rs, it’s vital to understand its value relative to your home currency. The Nepalese Rupee comes in denominations from 1 to 1,000 NPR, making it flexible for both small and large transactions. It’s important to familiarize yourself with Nepalese banknotes and coins to avoid confusion and recognize them easily during your travels or trek to Everest base camp or even the Bhutan Highlights tour for instance.

Current Currency Exchange Rates in Nepal

The currency exchange rates in Nepal can vary daily and across different service providers. The US Dollar to NPR rate tends to fluctuate, but as of recent years, the average rate has been around 1 USD = 133 NPR.

Note: The price may change daily so for you reference, please check the Nepal Rastra Bank to know about the actual daily rates.

CurrencyAverage Exchange Rate to NPR
US Dollar (USD)1 USD = 133 NPR
Euro (EUR)1 EUR = 145 NPR
Indian Rupee (INR)1 INR = 1.6 NPR
British Pound (GBP)1 GBP = 174 NPR

Note: Which Indian currency is not allowed in Nepal? Indian banknotes of 200, 500, and 2,000 INR are not accepted , but only 100 is accepted.

Best Ways to Handle Currency Payments in Nepal

Exchanging Foreign Currency in Nepal

When arriving in Nepal, especially Kathmandu, you’ll find several money changers in Kathmandu and at the airport currency exchange. Though airport exchanges are convenient, they may have less favorable rates and higher exchange fees and commissions. For better deals, consider local banks or licensed exchange centers in cities. Always double-check rates to avoid hidden charges, which can add up if you’re exchanging a substantial amount.

Tips for Foreign Currency Exchange in Nepal

  • Banks vs. Exchange Centers: Banks often have stable rates with lower commissions than private money changers.
  • Avoid Street Money Changers: Stick to licensed centers to avoid counterfeit currency.
  • Ask About Fees: Some providers may charge additional fees or have lower rates for smaller denominations.

Cash Payments and Local Currency Requirements

Nepal is predominantly a cash-based economy, and cash payments are preferred, especially in rural areas and smaller establishments. While you may find card acceptance or online payment in Kathmandu and other tourist hubs, cash will be necessary when venturing out.

How Much Cash to Bring to Nepal

If you’re unsure about how much cash to bring to Nepal, consider budgeting based on typical expenses. On average, $30–$50 per day should cover food, transport, and modest lodging. For emergencies, bringing an extra amount can be wise, as ATM access can be limited in remote areas.

Note: Read our blog about the safety and security while travelling in Nepal for further information.

What Can You Buy With $100 Nepalese Rupees?

While 100 NPR is roughly equivalent to just under 1 USD, it can still cover basic expenses. Here’s what you can typically buy with 100 NPR:

  • A cup of tea or coffee
  • A short bus ride within the city
  • Snacks or small street food items
  • Bottled water or soft drinks

Using ATMs in Nepal for Cash Withdrawals

ATMs in Nepal are available in major cities and tourist areas, including Kathmandu, Pokhara, and Chitwan. However, ATM access may be limited in rural areas. Keep these points in mind to manage your cash effectively:

  • ATM Fees: Nepalese ATMs often charge a fee for foreign cards, which can range from 400–500 NPR per transaction.
  • Withdrawal Limits: Most ATMs have a withdrawal limit, typically 10,000–35,000 NPR per transaction.
  • Preferred Cards: Major cards such as Visa and Mastercard are widely accepted; however, American Express may have limited acceptance.

Emergency Cash Access

For emergency cash access, it’s advisable to keep a reserve in your hotel safe or securely with you. Additionally, services like Western Union are available in larger cities if you need to receive funds from abroad.

Credit Card Acceptance in Nepal

In urban centers, many hotels, upscale restaurants, and shops accept credit cards. However, credit card acceptance is limited outside tourist-heavy areas, and some businesses may add a 3-5% surcharge for card payments. To ensure seamless payments, carry enough cash for smaller expenses and verify whether credit cards are accepted before making purchases.

Hidden Charges in Exchanges and Transactions

Some transactions, especially those involving credit cards, may incur hidden fees. Be cautious of:

  • Dynamic Currency Conversion (DCC): Avoid this option when offered during card payments, as it usually has higher exchange rates.
  • Foreign Transaction Fees: Check with your bank regarding foreign transaction fees, which can add up if you rely on card payments.

Best Places to Exchange Money in Nepal

For the best exchange rates, visit reputable banks or licensed money changers in popular tourist destinations:

  1. Kathmandu: Numerous licensed exchanges around Thamel.
  2. Pokhara: Lakeside is a convenient area for currency exchange.
  3. Airport Currency Exchange: Use only if necessary due to higher fees.
  4. Online Currency Exchange Services: Consider options like Xoom or Remitly for sending money to Nepal.

Travel Money Tips: For extended stays, consider withdrawing in bulk to minimize ATM fees and keeping a mix of smaller and larger denominations for flexibility.

Budgeting for Travel Expenses in Nepal

Key Expense Categories

When budgeting for travel in Nepal, consider these main areas:

  • Accommodation: Budget hotels can cost around 1,500 NPR per night, while high-end hotels range from 5,000–15,000 NPR.
  • Food and Dining: Local eateries charge as little as 150–300 NPR per meal, while upscale dining can be around 1,500 NPR per person.
  • Transportation: Public transport is inexpensive (10–50 NPR per ride), while private taxis within cities may cost 500–1,500 NPR.
Expense CategoryAverage Cost in NPR
Budget Hotel1,500 per night
Mid-range Restaurant1,000 per meal
City Taxi500–1,500 per ride

Payment Options in Rural Areas and Small Towns

In rural areas, local currency requirements are strict, as digital payments or foreign currency are rarely accepted. To prepare:

  • Carry enough NPR in small denominations for local vendors and transport.
  • Rely on cash for homestays, small restaurants, and public transportation.
  • Note that currency payments while travelling in Nepal are limited to cash in most remote areas, so planning ahead is crucial.

Online Payment Options: GPay and Cross-Border Payments

How to Use GPay in Nepal

GPay is operational in Nepal, mainly for local transactions. However, limitations exist for international transfers. To send money abroad, consider services like Remitly or traditional bank transfers.

Online Payment from Nepal to India

For payments to India, options include bank transfers and remittance services, as platforms like PayPal may not be supported.

Recognizing Nepalese Banknotes and Coins

Banknotes in Nepal vary in color and size, with prominent denominations including 10, 20, 50, 100, 500, and 1,000 NPR. Familiarizing yourself with these can prevent confusion, especially as some notes look similar to Indian currency.

1,000 Nepal Currency in Indian Rupees is approximately 625 INR, so exchanging beforehand can help avoid confusion.

Final Tips for Currency Payments While Travelling in Nepal

Quick Summary

  • Rely on cash payments, especially in rural areas.
  • Avoid high fees by using local banks for exchanges.
  • Use ATMs strategically to avoid extra fees.
  • Plan for potential card surcharges in tourist areas.

With this guide, navigating currency payments while travelling in Nepal should be simpler and more cost-effective, allowing you to focus on enjoying the wonders of this beautiful country.

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