Nepal Rastra Bank (NRB) has started circulating new banknotes for the upcoming festive season to the public from Sunday.
Though the central bank itself will distribute new banknotes to the public from October 2, it started distributing such notes to the bank and financial institutions (BFIs) from Sunday.
The central bank will provide exchange facility of two bundles of bank notes of Rs 5, Rs 10, Rs 20 and Rs 50 denominations, and a bundle of Rs 100 denomination per individual from its own office from next Sunday. Each bundle contains 100 bills.
People in Kathmandu can exchange new banknotes from the central bank’s Currency Management Department, Thapathali, while people outside valley can avail such service from the central bank’s eight offices across the country. An individual can exchange up to Rs 32,000.
The NRB is distributing Rs 1.5 billion worth of banknotes from commercial banks, Rs 200 million from development banks and Rs 70 million from finance companies in Kathmandu Valley.
Last year, the central bank had circulated a total of Rs 57.86 billion, including the denomination of Rs 1,000, in the festival season last year.
The NRB has been distributing new banknotes ahead of Dashain and Tihar festivals to meet the rising demand for crisp notes during major festivals. The customary practice of offering new notes while receiving Tika during Dashain and Tihar festivals increases demand for new notes.