History of Currency Notes in Nepal
Nepal had only metal coins from the Lichchhavi period to 1945 A.D. They were denominated and rates were fixed on the weight of the metal used. The denomination was termed as paisa. But in the nineteen forties, the people faced problems with dual monetary exchange system. The Indian coins were also circulated freely in the Nepalese market that affected adversely due to the inadequate communication system, illiterate people and open border. The result was the compulsion of the Nepalese side to accept the revenue also in Indian currency which pounced another blow to the exchange rate. The pure Nepalese silver coins started to be exchanged with debased coins infiltrated from India which made great deficit in national income. Therefore, the government of Nepal decided to issue paper money.
The first paper currency notes in Nepal were issued by the then Prime Minister Shree Tin Maharaj Juddha Shumsher Rana on 17th September 1945 (BS : 2002 Aswin 01). The office entrusted to print notes that time was called Sadar Muluki Khana. The then released currency notes were of denominations 1,5,10 and Rs.100 and the notes had the Picture of late King Tribhuvan’s crown (Shreepech as locally called in Nepalese language ). According to senior citizens, Juddha Shumsher had wanted to put his own picture and signature to the banknotes but was denied by the king.
The notes of king Tribhuvan were not signed by a bank governor, but by a Kajanchi (head of the treasury) who was a high Hindu priest in the same time. Nepal’s early paper currency probably includes the only notes of 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 the water marks and the special paper on which they are printed. Nepal Rastra Bank was only established later
The first thousand Rupees note was released by the Nepalese government on 6th of May 1969. (BS : 2026-01-24).
Similarly, the first Five Hundred Rupee note was released on 12th of June 1970. (BS : 2027-02-30).
Likewise, the first Fifty Rupee Note was released on 26th of April 1977 (BS : 2034-01-14).
It was on the 26th of April, 1981 (BS: 2038-01-14), the Rupees Two note was released and on the 8th of November, 1982(BS: 2039-07-22) the Rupee Twenty note was released.
A Rupees Twenty Five & Rupees Two Hundred and Fifty note were also released by the Nepal Rastra Bank. It was a Commemorative Issue of the Special Occasion of Silver Jubilee of His Majesty King Birendra’s Accession in 1997.
