If you’ve got old, torn, or damaged Nepalese rupee sitting in your wallet or drawer, don’t worry — they’re not useless! Nepal Rastra Bank (NRB) allows the exchange of damaged notes under certain conditions.
In this guide, we’ll explain where and how to exchange such notes, what conditions apply, and what documents are needed.
Where to Exchange Damaged Notes in Nepal
You can exchange your torn, soiled, or partially damaged Nepali notes at any of the following places:
- Nepal Rastra Bank (NRB) – Currency Management Department (Baluwatar, Kathmandu) and its regional offices in Biratnagar, Pokhara, Nepalgunj, and other provinces. [Recommended]
- Banks & Other Licensed Financial Institutions – Most A-class banks in Nepal (e.g., Nabil Bank, Global IME Bank, NIC Asia, etc.) accept slightly damaged notes for deposit.
Documents or ID Requirements
No identification documents are required for normal cases. However, for large-value damaged notes (e.g., bundles or business deposits), NRB may ask for details like income sources or a other written application.
What are the Conditions for Exchange (NRB Rules)
Nepal Rastra Bank allows the replacement of torn, soiled, or partially damaged notes if they are genuine and identifiable. However, if more than 50% of the note is missing or destroyed, it may not be eligible for replacement.
| No | Condition | Exchange Value | Description / Criteria |
|---|---|---|---|
| 1 | Slightly torn, stained, or soiled | Full Value | Minor tears, ink marks, folds, or dirt. Serial numbers and main design still visible. |
| 2 | Partially damaged (less than half missing) | Partial or Full Value (Case-based) | The note is genuine and identifiable. NRB officers decide value based on visibility of features and total area remaining. |
| 3 | More than 50% of note missing or burned | Not Exchangeable | If the note is heavily mutilated, burned, or unrecognizable — it cannot be replaced. |
| 4 | Counterfeit or fake notes | Not Exchangeable | Must be reported to Nepal Police or NRB. Handling fake currency is a legal offense. |
Note: The NRB Act (Section 57) authorizes the central bank to refuse replacement if more than 50% of a note is destroyed or its authenticity cannot be verified.
Step-by-Step Process to Exchange Damaged Nepalese Rupees in Nepal
Here’s how you can exchange your damaged Nepali currency easily:
Step 1: Sort and Check Your Notes
If you have large amount then, separate your damaged notes by condition. Remove any notes that are destroyed, burned, or missing 50% of the note parts. These may not qualify for exchange.
Step 2: Visit a Nearby Bank
Go to your nearest commercial or development bank. For slightly torn or soiled notes, banks usually replace or deposit them directly.
Step 3: Visit Nepal Rastra Bank for Heavily Damaged Notes
If your notes are badly damaged or partly missing, visit the Nepal Rastra Bank’s Currency Management Department.
Ask for help in the front desk, submit your notes for inspection. NRB staff will assess and decide whether you receive full or partial value.
Step 4: Fill Out the Exchange Form (If Required)
No need to fill forms if you need to exchnage a single or few notes. But for bulk exchanges, NRB may ask you to complete a simple exchange form with your name, contact details, and the total amount.
Step 5: Receive Replacement Notes
Once verified, you will get your replacement notes right away for small amounts, or within a few working days for larger amounts.
FAQs on Exchanging damaged notes in Nepal
Can I exchange damaged notes at any bank in Nepal?
Yes, most commercial banks accept slightly damaged notes. For severely damaged ones, visit NRB’s Currency Department.
Do I need to show my citizenship or ID?
Not for small amounts. Only large exchanges or business-related claims may need ID verification.
What if my note is half burned or torn in two pieces?
If more than 60% of the note is intact and identifiable, you can still get partial or full value at NRB. (Please visit NRB office for more informaiton)
How long does the process take?
Small exchanges at banks are done instantly. NRB exchanges may take a few minutes to a few days depending on amount and condition.
Other Special Cases
- Burnt or Fire-Damaged Notes – Can be exchanged only at NRB after inspection.
- Flood or Water-Damaged Notes – Must still show serial numbers and main features.
- Old Series Notes (Withdrawn) – Some may still be accepted at NRB even after being phased out.
- Foreign Currency Notes – Damaged foreign notes are not handled by NRB; contact respective foreign exchange dealers or banks.
Damaged or torn Nepali notes are still valuable — as long as they meet the NRB’s exchange conditions. You can exchange them easily at your nearest bank or NRB office, without needing much paperwork.
It took me less than a minutes to exchange my 500 nepali rupees note at NRB, Pokhara after commercial banks refused to exchnage or deposite. So next time you find a ripped or faded note, don’t throw it away — exchange it the right way!
