History of the Nepalese Rupee.
In ancient times, gold coins or silver coins were used as the currency in Nepal. And used to mention the name of Guru Gorakhnath and Paduka on the coins. This is what happens today.
Shah dynasty kings were a devotee of Guru Gorakhnath. Used to do all the work after their permission. They had written Sri Sri Bhawani and Sri Sri Gorakhnath in their currency and had marked Gorakh Paduka on the coins.
King Mandev of Lichhavi dynasty was the first King who started coins as currency in Nepal. In fact, he was the first King to start the trend of money or currency in Nepal. Copper coins were used at the reign of King Mandev.
The coin was called Mananka. However, it is also said that before the Lichhavi period, the kirant Dynasty had used the coin made of mud as the currency. But there’s no proof of it.
The trend started by King mandev had made the trade and management much easier. So his successor like Anshuverma, Narendradev also continued the trend of using the coins.
Then during the reign of Malla dynasty, King Mahindra Malla started the use of silver coins which was called mahindramalli. His successor and competitors had even printed the leather coins.
Until 1924, the Indian rupee was used in money circulation in the territory of Nepal. After it was replaced by silver Mohar.
The Mohar Nepalese was the official currency of Nepal between the 17th century and the beginning of the 20th century. The Mohar Nepalese was issued by royal decrees of kings monarchs of the kingdom of Nepal. The subunits that made up the Mohar were known as Paisa where 32 Paisa was equivalent to a Mohar.
Another subunit of the Mohar was known as the dam with 1 Mohar Nepalese being equivalent to 128 dams. The Mohar Nepalese was first introduced during the reign of King Girvan Yuddha between 1799 and 1816, where the coin was issued in currency, through which copper coins were minted in denominations 1 and 2 and 2.
Coins of silver and gold were minted in three denominations of one and a half, one, three quarters, one-half, four, eighth, and sixteenth Mohar.
The coinage of the copper coins was interrupted during the reign of the next king, Rajendra, while the issuance of three silver coins from a coin and a three-quarter coin was discontinued.
In 1866, the next king, Surendra (1847-1881) introduced a copper coin that contained half, one and two denominations Paisa and a dam. However, the coinage of the two-year gold coin was discontinued during this period. The Nepalese Mohar was replaced by the Nepalese rupee in 1932.
On June 1, 1945, the first Nepalese paper banknotes were printed and issued – tickets of the Nepalese government.
On April 26, 1956, the Central Bank of Nepal was created.
In 1961, as a result of regular monetary reform, the Nepalese Mohar was replaced by the Nepalese rupee in the 1: 1 ratio.
The Nepalese Rupee is the official currency of the Republic of Nepal. The currency is identified in the international money markets through its NPR code and is also abbreviated as Re (in the singular) or Rs (in the plural). The Nepalese rupee is composed of subunits known as Paisa, where the 100 Paisa composes 1 rupee.
The currency was introduced into the Nepalese economy in 1932 and replaced the Nepalese Mohar as the kingdom decimalized its currency at the rate of 2 Nepalese Mohar for 1 Nepalese rupee. During its adoption, the Nepalese rupee was indexed to the Indian rupee at the Indian rupee rate 1 for the Nepalese rupee 1.45, from 1932 to 1994 when it was revised for the Indian rupee 1: 1.6 Nepalese Rupee.
In October 2007, as a result of renewing the design of Nepalese rupee banknotes. The portrait of King Gyanendra in a crown with a plume of feathers of a bird of paradise was replaced with the image of Mount Everest.
Thus, the country’s government sought to reflect the historic transition from kingdom to republic, which occurred in Nepal in May 2008.
The Nepalese rupee in the monarch (1932-2007)
The currency was originally issued in coinage with the first notes issued during the reign of King Tribhuvan between 1945 and 1955. However, the question and regulation of the currency were led by the kingdom’s treasury, the Sadar Muluiki Khana, because the central bank of the kingdom had not been established.
The chief of the treasury was the Hindu high priest of the country, authorized to sign the notes. The central bank, Nepal Rastra Bank, was later established in 1956 and became the governing body of the national currency.
And its leader, the governor replaced the Hindu high priest as the person authorized to sign the notes. The banknotes had the appearance of the king in the anversos dressed in military costumes or in traditional Nepalese dress.
The Nepalese Rupee in the Republic (2008-present)
After Nepal ceased to be a monarch and became a republic in 2007, the currency underwent a change in appearance. All ballots issued after that did not have the king’s likeness, but they had the image of Mount Everest on the obverse. Currently frequently used banknotes include denominations 5, 10, 20, 50, 100, 500 and 1000 rupees.
Development of currencies in Nepal
In 1932 silver coins were denominated in denominations of 20, 50 Paisa and 1 rupee, followed by copper coins of 1, 2, and 5 Paisa between 1933 and 1935. In the 40s copper coins of ¼ and ½ Paisa were added, and 5 Paisa of cupronickel. In 1953 a new series of brass was introduced in denominations of 1, 2 and 4 Paisa, 50 and 10 Paisa of bronze and 20, 25, 50 Paisa and 1 rupee of cupronickel.
In 1966 aluminum coins of 1, 2 and 5 Paisa, and 10 Paisa of brass were introduced. In 1982, 25 aluminum Paisa coins were added, followed by 50 paise and 1 steel rupee in 1987 and 1988. In 1994, the sizes of the 10 and 25 Paisa coins were reduced, together with the 50 Paisa aluminum coins and 1, 2, 5 and 10 rupees of steel dipped in brass.
In 1951, the government introduced notes of 1, 5, 10 and 100 rupees denominated in mohru. In 1956 the State Bank assumed the powers to issue money and introduced a new series already denominated in rupees.
In 1972, 500 rupees and 1,000 rupees were added, followed in 1974 by denominations of 50 rupees, and 2 rupees in 1981. Rupee notes have been issued discontinuously, so much so that today it is possible to see a note of this denomination in circulation. In 1982, 20 rupee notes were introduced.
The first Nepalese banknotes were printed and issued in 1945. And have since appeared in several series with the portraits of four different kings until in 2007 for the first time a note without royal portrait was circulated.
The first banknotes with the portrait of King Tribhuvan (reigned until 1955): The first Nepalese banknotes appeared in denominations of 5, 10 and 100 Mohurs. And demonstrate on the front next to the inscription as the main motive a portrait of King Tribhuvan with the traditional crown, which has a tail of birds of paradise feathers.
In 1951, the value was added to a rupee, on which instead of the royal portrait of the figure of a coin can be seen. Thus, this banknote can be dated exactly, while almost all other banknotes circulating in Nepal were issued without a date.
Banknotes with the image of King Mahendra (reigned 1955-1972): From this time, two series can be distinguished. One demonstrated king in civilian clothes with the Nepalese headgear for men called ” Topi “. The second series shows the king in uniform.
During the time of Mahendra, the denominations of banknotes were changed from Mohur to Rupee. Values of 5, 10, 50, 100, 500 and 1000 rupees of the second series were put into circulation.
Banknotes with Portrait of King Birendra (1972-2001): Two series can also be distinguished from this period: The first series shows the king in uniform, while his image can be seen on the banknotes of the second series with the traditional crown.
For the first time grades were introduced at 2 and 20 rupees, which circulated in addition to the values of 1, 5, 10, 50, 100, 500 and 1000 rupees. Also, two special issues to 25 and 250 rupees have appeared commemorating the Silver Jubilee of Birendra Bir Bikram Shah in 1997.
Banknotes with Photo of King Gyanendra (2001-2008): The design of the notes from this period follows largely the notes of King Birendra, whose portrait was replaced by that of his younger brother and successor Gyanendra. The small values of 1 and 2 rupees were no longer printed and are only in circulation as coins.
Banknotes of the Republic of Nepal: Although Nepal officially became a republic only in 2008, a 500 rupee note appeared in autumn 2007, replacing King Gyanendra’s portrait with a picture of Mount Everest. In 2008, the remaining values followed at 5, 10, 20, 50, 100 and 1000 rupees.
This reflects the historic change from an empire to a republic that took over Nepal in May 2008. Later notes of 5, 10, 20, 50, 100 and 1000 rupees with image of Mt. Everest were issued. There was no reference to the image of Kings in their legends printed and issued since 2008. The first editions of the 500 and 1000 rupee notes were printed on paper.
That after before the crowned portrait as a watermark in the “window” on the right part of the king’s face had the notes. It was decided to print a red rhododendron flower (Nepal national flower) on the watermark. Notes from these denominations issued in 2009 and beyond are printed on paper,
Illustrations on the banknotes: In addition to the royal portraits mentioned above, historic buildings (especially Hindu temples) and statues of deities can be seen on the obverse of the notes.
The backs of the notes depict Nepalese landscapes or typical animals. The most well-known animals, which are still wild in the jungle area of Southern Nepal, are the rhinoceros (note to 100 rupees), the tiger (500 rupees) and elephant (1000 rupees).
Output institution and print locations: The notes of the first series from the Tribhuvan period were published by the National Treasury ( Sadar Muluki Khana ). And bear the signature of the head of this office, who bore the title Kajanchi and was also a royal priest.
Thus, Nepal’s early banknotes may be the only banknotes in the world bearing the signature of a Hindu priest. At the time of King Mahendra, the Nepal Rastra Bank (National Bank of Nepal) was founded in April 1956. Since then, the banknotes bear the signature of the respective governor of this institution.
The early banknotes from the Tribhuvan were from the Indian Security Press in Nashik manufactured and have no security features except for the watermarks and the special paper on which they are printed The government of Nepal commissioned well-known foreign companies such as Thomas de la Rue or Giesecke & Devrient for future banknotes. Since 2007, Nepalese rupee banknotes produced by Perum Peruri, the National Mint Public Company of Indonesia.
In 2012, Nepal National Bank has revised, printed and reissued banknotes series similar to the 2007 series. But now inscriptions are in English and the year of issue on the back.