History of currency notes and coins of Nepal (1945 onwards)

I came across this wonderful publication released by Central Bank of Nepal on its 50th anniversary. It lists and shows all the currency notes and coins used in Nepal since 1945.

India’s Nashik based Security Printing and Minting Corporation of India Limited printed these notes from 1945-60. Then Nepal GOvernment outsourced the activity to De La Rue of UK. Later Nepal’s notes were printed by other firms as well: Germany based Giesecke & Devrient, Australia based Note Printing (owned by Australian central bank), B A Banknote International of  Canada etc.

It gives me great pleasure in bringing out this publication on the ‘Notes and Coins of Nepal’ on the auspicious occasion of the Golden Jubilee Year of the Nepal Rastra Bank (NRB), which was established as the central bank of the country on April 26, 1956 under the Nepal Rastra Bank Act, 1955. Incorporating all representative notes issued in Nepal and the coins issued by the NRB, this publication captures the evolution of the notes and coins issuance in Nepal through their pictorial representation and description. I believe this publication will serve as a useful reference source to those interested in the notes and coins of Nepal.

It may be recalled that the NRB was established when a dual currency system was in practice with the Nepalese and Indian Currencies both circulating in the country. For the purpose of making the Nepalese Currency the legal tender, it was imperative to develop a proper system of notes and coins and ensure confidence in the national currency. This motivation was refl ected in the preamble to the 1955 Act which stated that the Bank would ensure “proper management for the issuance of the Nepalese currency notes”. This importance has been reiterated in the Nepal Rastra Bank Act, 2002 which states a function of the Bank as “to take necessary decisions with regard to the denominations of bank notes and coins, the figures, size, metal, materials for printing notes and other materials, and to frame appropriate policies with regard to their issue.” 

The responsibility of issuing currency notes was initially held by His Majesty’s Government, then called the Government of Nepal, through the “Sadar Mulukikhana” (Central Treasury) from September 1945 through February 1960, when this responsibility was handed over to the NRB. For this purpose, the NRB had set up the Note Department in September 1956 which was renamed as the Currency Management Department in November 2002. Since taking over the responsibility of issuing the currency notes, the NRB has issued notes in denominations of Rs. 1, 2, 5, 10, 20, 25, 50, 100, 250, 500 and 1000. I am pleased to mention that the NRB has also issued the commemorative note of Rs. 50 to mark its Golden Jubilee.

Likewise, His Majesty’s Government issued regular coins (1 paisa, 5 paisa, 10 paisa, 25 paisa, 50 paisa and Re 1) and various
commemorative coins through the Mint Department, which was set up in 1932 and functioned as it was until 1983 when this responsibility was also transferred to the NRB, which has been so far minting 5 paisa, 10 paisa, 25 paisa, 50 paisa, Rs. 1, 2, 5 and Rs. 10 as regular coins and a number of other commemorative coins. To streamline the currency management function through a one-window system, the Mint Department wasmerged with the Currency Management Department and renamed as the Mint Division since July 2005. The NRB has also issued silver coin of Rs. 1,000 and gold coins of 2.5 gm, 5 gm and 10 gm to mark the Golden Jubilee.

Fascinating …

One Response to “History of currency notes and coins of Nepal (1945 onwards)”

  1. History of currency notes and coins of Nepal (1945 onwards) - Machhapuchhre FM Says:

    […] Central Banks / Monetary Policy, Discussion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own […]

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