Nepal Money & Tipping: A Complete Guide for Travelers

Nepal, a breathtaking country nestled in the Himalayas, is a paradise for trekkers, culture enthusiasts, and adventure seekers. While planning your trip, understanding the local currency, money exchange, and tipping culture can significantly enhance your experience. This guide provides detailed insights into Nepalese currency, payment methods, costs, budgeting, and tipping etiquette.

What is Nepal’s Currency?

The official currency of Nepal is the Nepalese Rupee (NPR), abbreviated as Rs or NPR. The denominations of paper notes available are 1, 2, 5, 10, 20, 50, 100, 500, and 1,000 rupees. Coins are also available but are rarely used in daily transactions.

Are Other Currencies Accepted?

While the Nepalese Rupee is the primary currency, foreign currencies such as USD, EUR, and GBP are sometimes accepted in high-end hotels, tour agencies, and major trekking routes. However, transactions in foreign currencies are often at unfavorable exchange rates, so it is advisable to use local currency for everyday purchases.

Where Do I Get Nepalese Rupees?

Upon arrival in Nepal, you have several options for obtaining Nepalese Rupees:

Banks: Offer official exchange rates and receipts for currency exchange.
Currency Exchange Counters: Available at Kathmandu’s Tribhuvan International Airport and major tourist areas like Thamel.
ATMs: Convenient but may have withdrawal limits and fees.
Money Exchange Shops: Provide competitive rates but always verify their credibility.

ATMs in Nepal

ATMs are widely available in major cities like Kathmandu, Pokhara, and Chitwan. However, they may have certain limitations:

Most ATMs have a daily withdrawal limit of Rs 35,000 – Rs 50,000 per transaction.
Foreign card withdrawals typically come with a 3-5% transaction fee.
Power outages or internet issues may disrupt ATM functionality in rural areas.
VISA and Mastercard are widely accepted, but American Express and other cards may have limited acceptance.

Exchanging Money in Nepal

To get the best exchange rates, consider the following tips:

Banks offer the most reliable exchange rates but may take longer to process transactions.
Currency exchange shops in tourist areas can be convenient, but always check rates from multiple places before exchanging.
Avoid exchanging money in unauthorized locations to prevent scams or receiving counterfeit notes.
Carry smaller denominations to facilitate transactions in rural areas where change may not be available.

What If I Have Rupees Leftover When I Leave?

Since the Nepalese Rupee is not convertible outside Nepal, it is best to spend or exchange any remaining currency before departure. You can:

Convert leftover rupees to USD or other major currencies at banks or exchange counters at the airport.
Use small amounts for souvenirs, meals, or tipping.
Donate excess change to local charities or organizations.

Can I Pay with a Debit or Credit Card in Nepal?

Credit and debit cards are accepted in upscale hotels, restaurants, and larger stores, but many local businesses operate on a cash-only basis. Key points to note:

Visa and Mastercard are widely accepted, but Amex and Discover may have limited use.
Transaction fees (3-5%) are often applied to card payments.
Cash is preferred in rural areas and small businesses.
Mobile payments (like eSewa and Khalti) are gaining popularity but require a local account.

If All Else Fails…

If you run out of cash and face difficulty withdrawing money:

Visit a bank for over-the-counter withdrawals (bring your passport and card).
Ask hotels or tour agencies if they accept PayPal or international transfers.
Exchange emergency cash at a Western Union or MoneyGram outlet.

Should I Tip in Nepal, and How Much?

Tipping in Nepal is not mandatory but is greatly appreciated, especially in the tourism and hospitality sectors. Here’s a general guideline:

Restaurants & Cafés: 5-10% if service charge is not included.
Guides & Porters: Rs 500 – Rs 1,500 per day, depending on the trek.
Taxi Drivers: Tipping is not expected, but rounding up the fare is courteous.
Hotels: Rs 50 – Rs 200 for bellboys and housekeeping.
Massage & Spa: 10-15% if service was excellent.

How Much Do Things Typically Cost in Nepal?

Prices in Nepal vary depending on the region and level of comfort you seek. Here’s an estimate:

Street Food: Rs 100 – Rs 300 per meal
Local Restaurants: Rs 300 – Rs 800 per meal
Tourist Restaurants: Rs 800 – Rs 2,500 per meal
Hotels: Rs 1,500 – Rs 15,000 per night
Trekking Permit: Rs 2,000 – Rs 5,000
Transport (local buses, taxis): Rs 30 – Rs 500

What Is a Good Daily Budget for Nepal?

Your budget depends on your travel style:

Budget Traveler: $15 – $30 per day (hostels, local food, public transport)
Mid-Range Traveler: $40 – $100 per day (3-star hotels, private transport, guided tours)
Luxury Traveler: $150+ per day (5-star hotels, fine dining, private tours)

Hotel, Tour, and Permit Costs in Nepal

Accommodation and tour costs depend on the season and region:

Budget Hotels: $10 – $30 per night
Mid-Range Hotels: $40 – $100 per night
Luxury Hotels & Resorts: $150+ per night
Trekking Permits: Rs 2,000 – Rs 5,000 (depending on the trekking area)
Guided Tours: Rs 5,000 – Rs 15,000 per person per day (depending on the tour type)

Can I Haggle Over Prices?

Yes! Bargaining is common in Nepal, especially in markets and local shops. Tips for haggling:

Start by offering 30-40% less than the initial price.
Be polite but firm in negotiations.
Walk away if the price is too high—vendors may call you back with a better offer.
Fixed-price stores do not allow bargaining.

Entertainment Costs in Nepal

Nepal offers a variety of entertainment options for all budgets:

Cultural Shows: Rs 1,000 – Rs 3,000
Nightlife (Bars & Clubs): Rs 500 – Rs 2,000 per drink
Adventure Activities (Paragliding, Rafting, Bungee Jumping): Rs 5,000 – Rs 15,000
Cinema Tickets: Rs 300 – Rs 1,200

More Super-Useful Travel Advice for Nepal

Always carry small bills: Many places struggle to provide change for large notes.
Use a money belt: Keep cash and valuables secure.
Plan for power outages: ATMs and card machines may not work during load-shedding.
Download offline maps: Google Maps or Maps.me can help navigate remote areas.
Book flights in advance: Domestic flights fill up quickly, especially during peak season.

By understanding Nepal’s currency, budgeting wisely, and following tipping etiquette, you can make the most of your trip. Enjoy your time in Nepal, and happy travels!