Nepal Rastra Bank Limits Dashain Distribution of New and Crisp Banknotes

Nepal Rastra Bank (NRB) will not conduct the large-scale exchange of new and crisp banknotes for Dashain this year as it has done in previous years, citing the damage caused by recent floods, landslides and heavy rainfall.

The central bank said banknotes will be distributed based on actual demand rather than as part of a festive campaign. The decision has been taken in consideration of the losses caused by recent natural disasters and the need to manage the country’s currency resources accordingly.

According to the Currency Management Department of NRB, members of the public will continue to receive new and crisp banknotes through the central bank’s regular exchange counters based on their requirements.

Banks and financial institutions are also distributing new and crisp notes to their customers through their respective branches and service points, according to the central bank.

Despite the change in the distribution approach, NRB estimates that small-denomination banknotes worth around Rs 10 billion to Rs 15 billion could enter circulation during Dashain, based on previous years’ trends.

During the Dashain festival, demand generally rises for small-denomination banknotes, which are commonly used for giving Dakshina to family members, relatives and others.

The denominations most commonly exchanged during the festival are Rs 5, Rs 10, Rs 20, Rs 50 and Rs 100.

NRB’s decision this year means that the exchange of new and crisp notes will continue through regular channels, but the central bank will prioritize demand-based distribution rather than treating the process as a large-scale festive activity.