Currency of Nepal

The Nepalese Rupee, also denoted by NPR, is the official currency used in Nepal. The NPR is tied to the Indian Rupee (INR), being 5/8 its value. The Nepalese Rupee has a photo of its Excellency printed on it or minted in case of coins. The smallest unit of a Rupee is called Paise. 1 Paise is equal to 100th part of 1 Rupee. The coins are generally in 5 denominations, 10 Paise, 25 Paise, 50 Paise, 1 Rupee and 2 Rupees. The currency notes are of various denominations. The smallest denomination is 1 Rupee note. Apart from that, you have 2 Rupees, 5 Rupees, 10 Rupees, 20 Rupees, 25 Rupees, 50 Rupees, 100 Rupees, 500 Rupees and 1000 Rupees currency notes. The Nepalese currency is universally recognized and can be converted in any currency. It is a convertible currency. This can be done at money-exchanges.

When traveling to Nepal, it is helpful to be aware of the three main currency exchange rates:
The Rastra Bank rate - this is the rate set by the government's official bank.

Private Banks' rate - these rates are slightly more generous but still legal.

Black market rate - these most generous (but illegal) rates are the ones set by carpet shops and travel agents.
When you change money legally, you receive a Foreign Exchange Encashment Receipt, which shows the amount of hard currency you have exchanged. If leaving Nepal from the Katmandu airport without having spent all of your rupees, you can exchange up to 15% of the amount shown on these unused receipts back into hard currency.