Nepal Rastra Bank Scales Back Dashain New Banknote Exchange After Flood Losses
Nepal Rastra Bank will not run its usual large-scale Dashain exchange of new and crisp banknotes this year, citing damage from recent floods, landslides and heavy rainfall. Distribution will instead be demand-based through regular channels, though Rs 10 billion to Rs 15 billion in small-denomination notes may still enter circulation.
Nepal Rastra Bank (NRB) will not carry out its usual large-scale exchange of new and crisp banknotes for Dashain this year, 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 reflects 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 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
- Rs 100
NRB's decision this year means 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.