Nepal Rastra Bank to Issue Clean Notes Instead of New Notes for Dashain 2024

For the first time, Nepal Rastra Bank (NRB) will distribute clean notes instead of newly printed ones for the upcoming Dashain festival. Starting from September 13, clean notes can be exchanged at NRB’s central office, provincial offices, and other participating banks.

As in previous years, individuals can exchange up to Rs 18,500 in denominations of Rs 5, 10, 20, 50, and 100. However, this year marks a departure from the practice of issuing brand new notes, which the NRB began in Fiscal Year 2015/16 BS to boost the circulation of Nepali currency during the festive period as economic activity shifted from urban to rural areas.

This shift towards clean notes aims to reduce costs associated with printing new currency, which ranges between Rs 1.40 and Rs 4.68 per note. The misuse of notes, leading to quicker wear and tear, has resulted in an annual average cost of Rs 840 million for the country. By opting to distribute clean notes already in circulation, the NRB intends to promote better currency handling practices while addressing the high cost of printing new notes.

This move is expected to help maintain sufficient currency circulation during Dashain, when consumption typically increases, while reducing the financial burden of currency printing on the nation.