Nepal runs largely on cash, and a little planning around money saves real hassle — there are no ATMs on the trekking trails, foreign cards work only in the cities, and tipping has its own etiquette. Here's how to handle the rupee, withdrawals, exchange, and tips so you're never caught short.
The currency: the Nepalese rupee
Nepal uses the Nepalese rupee (NPR / Rs). It's a closed currency, meaning you typically can't buy it abroad and shouldn't try to take much out — change leftover rupees back before you fly home (keep some exchange receipts, which you may need to convert back). The exchange rate moves, so check the current rate before you travel rather than relying on old figures. Notes come in denominations up to Rs 1,000; keep a stash of small notes, which are essential for taxis, tea, and tips.
Cash is king
The single most important rule: Nepal is a cash economy outside upmarket city venues. Cards and digital payments are growing in Kathmandu and Pokhara, but as soon as you leave the tourist core — and on every trek — you'll need physical rupees. Plan to carry more cash than you would in a card-first country, and keep it secure in a money belt with a backup stash separate from your main wallet.
ATMs: limits and fees
ATMs are widespread in Kathmandu, Pokhara, and larger towns, and most accept foreign Visa and Mastercard. The catches:
- Low withdrawal limits per transaction (often around NPR 10,000-35,000 depending on the bank).
- A fee per withdrawal (commonly around NPR 500), on top of your home bank's foreign-transaction charges.
- To minimise fees, withdraw the maximum each time rather than making many small withdrawals.
Some banks have higher limits than others, so it's worth trying a different machine if the amount is low. Always have a backup card, and tell your bank you're travelling so withdrawals aren't blocked.
Exchanging money
Bringing some foreign cash as a backup is wise — US dollars are the most useful (and required for the visa-on-arrival fee), with euros and pounds also easy to change. Licensed money changers in Thamel and Lakeside are convenient and often give better rates than hotels or the airport; compare a couple and count your money before leaving the counter. Keep notes clean and undamaged, as torn foreign notes are sometimes refused.
Cards and digital payments
You can pay by card at better hotels, restaurants, and shops in tourist areas, but expect a surcharge (often 3-4 percent) and don't depend on it. Mobile wallets dominate among locals but generally need a Nepali bank account, so they're not practical for short-term visitors. Treat cards as a city convenience, not a trekking option.
Money on the trek
Once you leave the trailhead there are no ATMs, and prices climb steadily with altitude as everything is carried up by porter or mule. Withdraw or exchange all the cash you'll need before you start, budgeting for:
- Daily teahouse lodging and meals (rising higher up)
- Snacks, bottled or treated water, hot drinks
- Charging devices and Wi-Fi (both usually paid)
- Tips for guide and porter
- A buffer for delays, emergencies, or a helicopter contingency
Plan the daily figures with our Nepal travel budget guide, and carry it in small denominations — change for a Rs 1,000 note can be scarce in a remote village.
Tipping etiquette
Tipping is customary in Nepal, particularly in tourism. A rough guide:
| Who | Customary tip |
|---|---|
| Trekking guide | A meaningful sum at trek's end (group pools it) |
| Porter | Less than the guide, but important to them |
| Restaurant (tourist) | Round up or ~10% if no service charge |
| Hotel staff / housekeeping | Small notes appreciated |
| Taxi | Not expected; round up the fare |
Guides and porters often depend on tips as a real part of their income, so factor them into your trek budget rather than treating them as optional. Tip in rupees, and hand porter tips directly to ensure they reach the right person.
Common money mistakes to avoid
A few errors catch travelers out repeatedly:
- Assuming cards work everywhere. They don't — outside city tourist venues it's cash only, and every trek is cash only.
- Not carrying enough trek cash. There are no ATMs past the trailhead and prices rise with altitude; running short mid-trek is a real problem.
- Changing money at the airport. Convenient but usually a poor rate — change a little to get into town, then use a licensed changer in Thamel or Lakeside.
- Bringing torn or old foreign notes. Damaged or pre-2013-series USD notes are often refused; bring clean, newer bills.
- Forgetting to tell your bank. Un-notified foreign withdrawals can be frozen — flag your travel dates and carry a backup card.
- Leaving with rupees. It's a closed currency; change leftovers back before you fly, keeping exchange receipts.
Quick money tips
- Bring some USD for the visa and as backup.
- Use ATMs in cities; carry all trek cash from town.
- Keep small notes for taxis, tea, and tips.
- Change leftover rupees before you leave Nepal.
- Always have a backup card and a separate emergency cash stash.
Sort your cash strategy before you head for the hills and the rest is easy. For the bigger picture, fold this into your overall plan with the plan your Nepal trip guide and the budget breakdown.
