New banknotes are one of the factors that distinguish Dashain and Tihar, the country’s biggest festivals. 

As there is a tradition of giving a small amount of money along with Tika, Jamara and blessings in Dashain, demand for new banknotes between the denominations of Rs 5 and Rs 100 is high.

New notes, especially delight the children.  

People across the country queue in front of banks to exchange their old Rs 500 and Rs 1,000 banknotes for the new ones of lower denominations days before the festival begins. 

While most of the banks provide the exchange facility, Nepal Rastra Bank (NRB) runs special counters generally a week before the start of the festival. 

However, that might not be the case this year as NRB, breaking a long tradition, has decided to issue ‘clean’ instead of ‘new’ banknotes.

By clean notes, we mean the previously issued and circulated notes, which are still usable, Bhagawat Acharya, Assistant Information Officer at the NRB, told NBA.

According to Acharya, the central bank’s move is aimed at utilising old notes which remain unused for most of the year after the festival ends, saving a ‘huge’ amount of money needed for printing new notes aboard, and most importantly to promote the central bank’s strategy to reduce reliance on physical cash and promote digital transactions.

 “We have taken an economical approach," Acharya added.

The NRB had planned to phase out the issuance of new notes some years ago, but its implementation faced setbacks.

This festival season, the central bank will bring into operation its counters to provide the exchange facility from the last week of September.

Dashain festival begins this year on October 3 and will continue until October 17.  

An Individual can get bundles of Rs 5, Rs 10, Rs 20, Rs 50 and Rs 100 denominations up to a maximum amount of Rs 18,500, said Acharya, suggesting people to get their notes exchanged at banks now rather than queue at NRB’s counters later.