The History of Money in Nepal | currency notes and coins

History of Money

Excavations in Tilaurkot during the period of 1967-1976, revealed that the earliest coins recorded in Nepal are ‘kushan’, ‘kaniksha’ and ‘havisha’ coins (1st century) and the ‘punch marked’ coins (6th and 5th century B.C.). King Mandeva’s rule in the 5th century gave birth to the Licchavi coins. It was during the Malla period that more systemization was brought in monetary terms. Coins were then issued in denominations of 2 mohur (equivalent to one rupee), 1 mohur (50 paisa), one and a half sukka (36 paisa), sukka (25 paisa), sukki, or ‘tinnani’, (12 paisa), anni (6 paisa), adhani (3 paisa), paisa (1 paisa), and dam (1/4 paisa).

In 1545, Dolkha King Indrasinga Deva minted the first silver coins with the rupee coin weighing in at 11.6 gm (1 tola). During Mahendra Malla’s rule, the first silver coins were minted in the Valley with each 1 tola coin being called a Mahendra Malli. The ‘windblown type’ silver coin called ‘Fukadam’ (‘Chundam’ in Newari) was made during Jayaprakash Malla’s reign in Kantipur. Guinness Book of Records has reportedly listed it as the world’s smallest coin.

During Prithivi Narayan’s reign, in 1754, the first Shah Dynasty coins were minted and the first silver ‘mohur’ coins were minted. During Mathasingh’s brief reign, (a Khasiya king of western Nepal who attacked the valley in 1328), while mostly noble and base metals like gold, silver, copper, nickel, brass and aluminum were used to make coins, coins made of clay were also issued.
Such clay coins were given as tokens to laborers who having collected a certain number could then exchange them for real coins.

At one point in the country’s history, leather coins, rumored to be made by ‘Sarki’ (a clan that traditionally worked in leather) kings, were also used. During the 1640s, Nepali coins were used freely in Tibet. One such coin was known as ’15 karma’. It could be fragmented to get smaller denominations called ‘chotangs’.

The coins had a design of eight petals and so, fragmentation was based on the number of petals. For instance, 5 petals equaled 10 karma, 4 petals, 7 and a half karma and 3 petals, 5 karma. From the Licchavi period to until 1945, denominations and rates of coins were determined by weight of the metal used.

It was in October, 1945, that paper money was first introduced here, when Rs.5, Rs.10 and Rs.100 bank notes were issued. Banknotes were known as ‘mohru’ until 1956.

NEPAL CURRENCY SPOTLIGHT: NEPALESE RUPEE

Nepal is famous for its intriguing history, modern tourism, and for being the spiritual home of Buddhism. The Nepalese rupee reflects both the ancient history of Nepal and the country’s ongoing modernisation.

Nepal Currency Code: NPR
Nepalese Rupee Symbol: रू
Subunit: paisa (1/100)
Coins: 1, 5, 10, 25, 50 paisa, Re. 1, Rs. 2, Rs. 5, Rs. 10
Banknotes: Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500, Rs. 1000
Nepal GDP (nominal): US$24.067 billion
Central Bank: Nepal Rastra Bank

NEPAL CURRENCY HISTORY

The Nepalese rupee came into use in 1932. Before this, the silver mohar was used for near on 300 years. The rupee was initially introduced at a value of 1 to 2 mohar, and was later pegged to the Indian rupee in 1993.

NEPALESE RUPEE NOTES AND COINS

The dates on rupee coins use the calendar of the Vikram Samvat era, which began more than two millennia ago. One of the main features on the coins is the royal crown, which was (until recently) worn by the King of Nepal. It was meant to symbolize the power of a man who was essentially a personification of the Hindu god Vishnu.

The most recent series of banknotes was introduced in 2012 and is known as the Mount Everest series. While similar to what came before, an English inscription and date of issue were added.

Value	Colour	Obverse	Reverse
5 rupees	Lilac, brown and green	Mount Everest; temple of Taleju; obverse of coin	Two yaks grazing; Mount Everest
10 rupees	Brown, green and lilac	Mount Everest; Garud Narayan of Changu Narayan temple	Three black bucks grazing; trees; bank logo
20 rupees	Orange and brown	Mount Everest; temple of god Krishna of Patan; Garuda atop pillar	Swamp deer; trees; mountain; bank logo
50 rupees	Purple, green and blue	Mount Everest; Rama-Janaki temple of Janakpur	Male thar; mountains; bank logo
100 rupees	Green and lilac	Mount Everest; Mayadevi inside silver metallic oval; map of Nepal; Ashoka pillar; wood carvings from temple of Taleju in Kathmandu; description “Lumbini – Birthplace of Lord Buddha”	One-horned rhinoceros in grassy plain; bank logo
500 rupees	Brown and violet	Mount Everest; god Indra; Mount Amadablam and Thyangboche monastery; wood carvings; clouds	Two tigers drinking melted snow
1,000 rupees	Blue and gray	Mount Everest, Swayambhunath stupa & Harati temple	Elephant

FINAL THOUGHTS

While a peg to the Indian rupee takes management of the currency out of the hands of the Central Bank, Nepal focuses heavily on building up its developing economy.