Travel Tips
Counterfeit Currency in Nepal: What to Know
Counterfeit notes are an occasional issue in Nepal. Here is how to identify genuine Nepali Rupees and what to do if you receive a fake note.
Overview
Counterfeit Nepalese Rupee notes exist, though they are not a major issue for most travellers. The highest denomination notes (NPR 1,000 and NPR 500) are the most likely to be counterfeited. Knowing what to look for protects you from losses at markets, in taxi transactions, and when receiving change.
The Nepal Rastra Bank (central bank) regularly updates security features on banknotes — familiarise yourself with the features of currently circulating notes.
Key Tips
Genuine NPR notes have several security features: a colour-shifting security thread visible when tilted, a watermark of King Prithvi Narayan Shah (older series) or Mount Everest (newer series), and micro-printing along borders. The paper feels distinct — smooth but with a slight texture unlike plain paper.
Always exchange money at licensed money changers or banks. Count your notes before leaving the counter. If a note feels different in texture or looks off, hold it up to the light and check the watermark before accepting it.
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FAQ
What should I do if I receive a counterfeit note?
If you discover a suspect note, report it to the nearest Nepal Rastra Bank branch or police station. Do not try to pass it on — using counterfeit currency is a criminal offence. The loss, though unfortunate, is usually small.
Are Indian Rupees also counterfeited in Nepal?
Yes, counterfeit INR notes (particularly the old INR 500 and INR 1000 notes) circulated in Nepal historically. Only INR notes below INR 100 are now accepted in Nepal anyway, reducing this risk.
Do Nepali ATMs ever dispense counterfeit notes?
This is very rare. ATMs at reputable bank branches (Himalayan Bank, NIC Asia, Standard Chartered) are the safest source of genuine notes. Privately operated ATMs in remote areas carry a slightly higher risk.
