Printing New Banknotes is Expensive

According to the Nepal Rastra Bank Act, 2058, the Nepal Rastra Bank holds the exclusive authority to issue banknotes. As per Section 52 of the Act, the bank may issue notes of various denominations as needed. The images, size, denominations, and security features of the notes are determined by the bank's committee with the approval of the Government of Nepal.

Note Printing Process:

1. Based on Study and Need: Notes are printed based on the study conducted by the Nepal Rastra Bank. Each note is assigned a six-digit number, starting from 'A 1' and going up to 'A 100', with additional serials such as 'Ka' to 'Gya' added as required.

2. Design Process: The note design committee, which includes experts along with the Governor, prepares the design of the notes. The design is then approved by the Board of the Rastra Bank and the Council of Ministers.

3. Printing Arrangement: Before printing, a global tender is announced, and the responsibility is given to a company that is technically and financially competent. The printed notes are only recognized as valid after the Nepal Rastra Bank issues a notice bringing the 'prefix number' into circulation.

Legal Status of Notes:

• The Government of Nepal can publish a notice in the Gazette to restrict the circulation of any banknote outside specified locations. The issued notes are considered legal tender for settling both public and private debts within Nepal.