The Nepalese rupee is the official currency of the Federal Democratic Republic of Nepal. The Nepalese rupee is subdivided into 100 paisa. The issuance of the currency is controlled by the Nepal Rastra Bank, the central bank of Nepal. The Nepalese rupee was introduced in 1932, when it replaced the Nepalese mohar at the rate 2:1. Prior to 1994, the Nepalese rupee was pegged to the Indian rupee at the rate रू1.45 = ₹1, however since then it has been pegged at the rate रू1.60 = ₹1 currently.
History
The rupee was introduced in 1932, replacing the silver mohar at a rate of 2 mohar = 1 rupee. At first, the rupee was called the Mohru in Nepali. Its value was pegged to the Indian Rupee in 1994 at a rate of 1.6 Nepalese rupees = 1 Indian rupee.
1945–1955
Rupees in Nepal and Pakistan were worth the same amount. Early banknotes which were issued between 1945 and 1955 during the rule of King Tribhuvan were put into circulation by the Sadar Muluki Khana as Nepal did not have a Central Bank at that time. Notes issued under the reign of King Tribhuvan were therefore not signed by a bank governor, but by a Kajanchi who also serves as a Hindu high-priest. As such, Nepal’s early paper currency probably include the only bank-notes in the world which were signed by a high-priest. These early notes were printed by the Indian Security Press in Nashik and do not have any security features, except for watermarks and the special paper on which they are printed.
1955–1972
Starting with King Mahendra, who succeeded his father Tribhuvan in 1955, banknotes were issued by Nepal Rastra Bank which was founded on April 26, 1956. The signature of the governor of this institution is found on all banknotes which were issued after this date. Under King Mahendra, the Nepalese Government became “His Majesty’s Government” and remained this way during the rule of Birendra and Gyanendra. Two series of banknotes were issued during the rule of King Mahendra: The first series shows the King in civilian clothes wearing the Nepalese “topi”, while on the notes of the second series the King is shown in military uniform. The second series comprised higher denominations of 500 and 1000 rupees notes, which had not been issued before.
1972–2001
During King Birendra’s rule, one can also distinguish between two major series of banknotes. The first series features the king wearing the military uniform while on the notes of the second series the king is wearing the traditional Nepalese crown adorned with feathers of the bird of paradise. During this period regular banknotes of 2 and 20 rupees and special banknotes of 25 and 250 rupees were issued for the first time. The legends found on the last issues of Gyanendra revert to Nepal sarkar, thus omitting the reference to the king.
2007–2012
In October 2007, a 500-rupee note was issued on which the king’s portrait was replaced by Mt. Everest. This reflects the historic change from a kingdom to a republic which took place in May 2008 in Nepal. Further notes of 5, 10, 20, 50, 100 and 1000 rupees with Mt. Everest and without reference to the king in their legends followed in 2008. The first issues of the 500- and 1000-rupee notes were printed on paper which still had the king's crowned portrait as a watermark in the "window" on the right part of the face of the notes. It was decided to print a red Rhododendron flower on top of the watermark. Notes of these denominations which were issued in 2009 and thereafter are printed on paper which has a Rhododendron flower as watermark instead of the royal portrait and were therefore released without the additional overprint in red.
Banknotes
On 17 September 1945, the government introduced notes for 5, 10 and 100 rupees, with the name mohru used in Nepalese. There are also 25- and 250-rupee notes commemorating the Silver Jubilee of Birendra Bir Bikram Shah in 1997. Since 2007, Nepalese rupee banknotes have been produced by Perum Peruri, the National Mint Public Company of Indonesia. In 2012, Nepal Rastra Bank issued a revised banknote series that are similar to the 2007 series, but now include inscriptions in English and the year of issue on the back.
