The Nepali rupee and the INR peg
Nepal's currency is the Nepali rupee (NPR, written Rs or रु). Notes come in 5, 10, 20, 50, 100, 500 and 1,000, and 1 and 2 rupee coins still circulate. Since 1993 the Nepali rupee has been fixed to the Indian rupee at 1 INR = 1.6 NPR, so the arithmetic is easy for Indian travellers: divide any Nepali price by 1.6, or multiply it by 0.625. An NPR 1,000 entry ticket costs ₹625, and a NPR 400 plate of momos costs ₹250. Menus in Thamel and Lakeside show prices before 10 percent service charge and 13 percent VAT, so a NPR 1,000 bill becomes about NPR 1,243.
Against the US dollar and other currencies the Nepali rupee floats with the Indian rupee, at roughly NPR 135–145 per US dollar during 2026. Foreign visitors get the best rates at banks and licensed money changers in Thamel and Lakeside, which display their rates on boards; hotel desks pay 2–4 percent less. Keep exchange receipts, because banks ask for them if you want to change unused Nepali rupees back before leaving. Rates move daily, so check current status before you travel.
Carrying Indian rupees into Nepal
Indian rupees are widely accepted in Kathmandu, Pokhara, Lumbini and every border town, and hotels, drivers and shops in tourist areas will quote in either currency. For almost a decade after India's 2016 demonetisation, Nepal banned Indian notes above ₹100. Nepal Rastra Bank has since eased the rule: Indian and Nepali nationals may carry post-November 2016 ₹200 and ₹500 notes up to a total of ₹25,000 per person, and banks and money changers can exchange up to that amount. Old ₹500 and ₹1,000 notes remain banned.
In practice, small shops and taxi drivers still prefer ₹100 notes and smaller, and many give change in Nepali rupees at the 1.6 rate. We suggest Indian guests carry ₹10,000–15,000 in mixed notes for a 5–7 night trip, then use UPI or an ATM for the rest. Indian currency cannot be taken from Nepal to a third country. These rules are set by Nepal Rastra Bank and change from time to time, so check current status before you travel.
UPI, QR codes and digital wallets
Nepal runs on QR payments. Tea stalls, taxis, pharmacies and temple shops display Fonepay QR stickers, used by Nepali customers through bank apps and wallets such as eSewa and Khalti. Since 2024 a link between NPCI International and Fonepay has let Indian UPI users scan many Fonepay QR codes and pay in Nepali rupees, with the amount debited from an Indian bank account in INR.
Not every Indian bank or app supports cross-border UPI yet, and some require you to switch on international UPI in the app first. Per-transaction and daily limits apply, and a small fee may be added by your bank. Try a test payment of NPR 100 at your hotel on the first evening before relying on it. Nepali wallets such as eSewa and Khalti normally need a Nepali phone number and identity verification, so they suit long stays more than a week's holiday. Check current status with your bank before you travel.
ATMs, cards and money changers
ATMs are common in Kathmandu, Patan, Bhaktapur, Pokhara and Sauraha, but scarce in hill villages and on trekking routes, so draw cash before you leave a city. Most machines accept Visa and Mastercard; RuPay works at a growing number of Nepali bank ATMs. Expect a local fee of about NPR 500 per withdrawal plus your own bank's foreign transaction charge, and a per-withdrawal limit of roughly NPR 10,000–35,000 depending on the bank. Use machines inside bank branches or hotel lobbies, and tell your bank you are travelling so your card is not blocked.
Hotels, larger restaurants, supermarkets and handicraft shops in Thamel accept cards, often with a 3–4 percent surcharge. Smaller guesthouses, local eateries, monument counters and most taxis take cash or QR only.
| Payment method | Works best for | Typical cost or limit | Our advice |
|---|---|---|---|
| Indian rupee notes | Shops, drivers, hotels in tourist areas | ₹200/₹500 notes up to ₹25,000 per person | Carry ₹100 notes for small purchases |
| Nepali rupee cash | Entry fees, taxis, street food | Get from ATM or money changer | Keep NPR 50 and 100 notes handy |
| UPI via Fonepay QR | Cafes, shops, pharmacies | Bank-set limits; small fee possible | Test on day one |
| Visa or Mastercard | Hotels, larger shops | 3–4 percent surcharge common | Carry a backup card |
| ATM withdrawal | Cash top-ups in cities | ≈ NPR 500 local fee per withdrawal | Withdraw larger amounts less often |
| US dollars | Visa fee, exchange | Rates posted on boards | Bring clean, undamaged notes |
Tipping in Nepal
Tipping is customary in tourism but modest by international standards. Many restaurants in tourist areas already add a 10 percent service charge, which goes into a staff pool, so extra tips there are optional. For guides, drivers and porters, a tip makes up a real part of their income, and we suggest handing it over personally at the end of the trip in an envelope, in Nepali or Indian rupees.
- Hotel porter: NPR 100–200 per bag
- Private driver: NPR 500–800 per day
- Licensed city guide: NPR 800–1,500 per day
- Trekking guide and porters: about 10–15 percent of the trek cost, shared among the team
- Puja priest at Pashupatinath or Muktinath: a dakshina of your choice; agree any fixed puja price in advance
Buying a SIM card: NTC or Ncell
Nepal has two main mobile operators: Nepal Telecom (NTC, branded Namaste) and Ncell. Both sell tourist SIMs at counters in the Kathmandu airport arrival hall and at their own stores in Thamel, New Road and Pokhara. You need your passport or Indian voter ID, a passport photo, and sometimes a fingerprint scan; activation takes 10–20 minutes.
Ncell is usually faster in Kathmandu and Pokhara, while Nepal Telecom tends to have wider coverage in remote hills and along many trekking routes, so trekkers often carry both. Data is cheap: tourist packs with 10–30 GB for one to four weeks cost roughly NPR 600–2,000, and top-ups are sold at small shops everywhere. Indian Jio, Airtel and Vi numbers can roam in Nepal with an international roaming pack, though the daily cost is higher than a local SIM. Prices change often, so check current status before you travel.
eSIMs and staying connected
An eSIM saves the airport queue, but check three things first. Your phone must support eSIM and be carrier-unlocked; many phones sold in India support eSIM, but older and budget models do not. Ncell has offered tourist eSIM plans priced at roughly NPR 600, 1,000 and 2,000 for 7, 14 and 28 days, and international eSIM apps sell Nepal data plans that roam on NTC or Ncell.
Most international eSIMs are data-only and come without a Nepali phone number, so you cannot receive local calls or OTP messages from Nepali services. Hotel and cafe Wi-Fi is common in cities, but slow in hill towns when many guests are online. Power cuts are now rare in Kathmandu, yet a 10,000 mAh power bank helps on long road days. For heli tours and treks, download offline maps before leaving Kathmandu.
- Before you fly: tell your bank about the trip and switch on international card use and international UPI
- Save your hotel's address in Nepali script for taxi drivers who do not read English
- Keep one card and some cash in a separate bag from your wallet
- Photograph your passport or voter ID, as SIM counters and hotels both ask for a copy
- Ride-hailing apps such as Pathao and InDrive work in Kathmandu and Pokhara and accept cash payment
Places in this guide
Questions travellers ask
Can I use Indian rupees in Nepal?
Yes. Indian rupees are accepted across tourist areas of Nepal at the fixed rate of 1 INR to 1.6 NPR. Under rules eased by Nepal Rastra Bank, Indian and Nepali nationals can carry post-2016 ₹200 and ₹500 notes up to ₹25,000 per person, while ₹100 and smaller notes are accepted most widely. Change is often given in Nepali rupees. Check current status before you travel.
Are ₹500 notes accepted in Nepal now?
Yes, within limits. Nepal now allows Indian and Nepali nationals to carry new-series ₹200 and ₹500 notes, issued after November 2016, up to ₹25,000 per person. Old demonetised ₹500 and ₹1,000 notes stay banned. Some small shops and drivers still hesitate to take ₹500 notes, so carry ₹100 notes too. The rules come from Nepal Rastra Bank; check current status before you travel.
Does UPI work in Nepal?
Yes, at many merchants. Since 2024 Indian UPI apps from participating banks can scan Fonepay QR codes in Nepal, paying in Nepali rupees with INR debited from your account. Not every bank or app supports it, and some require international UPI to be activated first. Limits and small fees apply. Test a small payment on your first day and keep cash as a backup.
What is the INR to NPR exchange rate?
The Indian rupee is fixed to the Nepali rupee at 1 INR = 1.6 NPR, a peg in place since 1993. So NPR 1,000 equals ₹625 and ₹1,000 equals NPR 1,600. Money changers may offer slightly less, around 1.58–1.6. The rate against other currencies, such as the US dollar, floats, at about NPR 135–145 per dollar in 2026.
Which SIM card is best for Nepal, NTC or Ncell?
For Kathmandu, Pokhara and Chitwan both work well, and Ncell often gives faster data in cities. For treks and remote hill areas, Nepal Telecom usually has wider coverage. Tourist packs from either cost about NPR 600–2,000 for 10–30 GB. Buy at the airport arrival hall or an official store with your passport or voter ID and a photo.
Does my Indian SIM work in Nepal?
Your Indian SIM works in Nepal only with international roaming switched on, through a Jio, Airtel or Vi roaming pack. Near the border, Indian networks sometimes reach a few kilometres into Nepal, but not in Kathmandu or Pokhara. Roaming is convenient for receiving bank OTPs, but for daily data a local Nepali SIM costing under NPR 2,000 is much cheaper.
Can I use an eSIM in Nepal?
Yes, if your phone supports eSIM and is unlocked. Ncell sells tourist eSIM plans, and international eSIM providers offer Nepal data plans that run on local networks. Most international eSIMs are data-only, without a Nepali number for calls or OTP messages. Install and test the eSIM before you fly, and keep your Indian SIM active for bank messages from home.
How much does it cost to withdraw cash from ATMs in Nepal?
Nepali ATMs usually charge a foreign card fee of about NPR 500 per withdrawal, on top of your own bank's foreign transaction fee. Withdrawal limits are roughly NPR 10,000–35,000 per transaction, depending on the bank. Fewer, larger withdrawals keep fees down. ATMs are plentiful in cities and towns like Sauraha, but rare in hill villages, so carry enough cash before leaving.
How much should I tip a driver and guide in Nepal?
We suggest about NPR 500–800 per day for a private driver and NPR 800–1,500 per day for a licensed city guide, given at the end of the trip. Trekking teams usually receive 10–15 percent of the trek cost, shared among guide and porters. Restaurants often add a 10 percent service charge, so further tips there are optional. Indian rupees are fine for tips.
