Denominations of 500 and 1000 Indian rupees are banned and illegal to carry in Nepal.
So, avoid this currency as they will be confiscated or you may also be fined.
1 USD=~100 Nepali Rupees (NPR/Rs.)
You can exchange most of the foreign currency through local Banks or Money Exchanges in Kathmandu, and all-around Thamel. Though the bank provides slightly better rates, rates form both are more or less the same, or slightly different. The ongoing rates of exchange are visibly displayed. If you ask, our office representative will surely help you with exchanging your home cash into Nepalese currency. You can also exchange small amounts of cash from the Hotel premises.
Money exchanger is the best places to buy Nepalese currency in Kathmandu in terms of exchange rates, accessibility, and availability. Most money exchangers are usually open from 8 am to 8 pm. Please be sure to carry your Passport along for identification and ask for the exchange receipt, which will be required if you wish to re-exchange the currency later through Bank.
Banking is another good option to convert your currency. Although they provide slightly better rates, the process is a bit lengthy and usually time-consuming. In the bank, you’ll have to fill a number of forms, show your original passport and need to be in a queue. To be noted that banking hours are limited only from 10 am to 5 pm.
There are also quite several ATM’s open 24-7 hrs. You can withdraw (in Rupees Only) a maximum of Rs. 35,000 (depending upon banks) from one of many ATMs in Kathmandu or other city areas for a processing fee of around 500 Rupees. Make sure to inform your home bank and credit card providers before traveling. This is because often the banks shut down your card for the mistake of cloned or stolen cards. Although there are plenty of ATMs in Nepal, not every ATM will accept international cards. While the fees are proportionally too high, it’s always better to bring your home cash as you will save about 7% with a better exchange rate and no ATM fees.
Despite having security benefit of traveler’s cheque, we prefer cash to avoid hassles of 3 to 10 days of a lengthy process and high rates of commission at the banks.
Though, selling the currency might be slightly different than the previously exchanged rate. If you want to re-exchange the remaining Nepali currency, better to change in the city for better rates because many travelers complain about the poor rates at the airport.
Note: Please ensure your bills aren’t worn, torn or tattered, as they are unlikely to be accepted by banks and exchange counters even if they’re slightly damaged.
Please assure that you have new, clean notes.