Nepal Rastra Bank to print 230 million NPR 500 notes worth NPR 115 billion

KATHMANDU: Nepal Rastra Bank (NRB), the country’s central bank, has announced plans to print 230 million NPR 500 denomination notes, totaling NPR 115 billion. The move comes as part of an ongoing effort to maintain adequate currency circulation amid rising demand.

Bidding Process Underway

The NRB has scheduled a pre-bidding meeting for April 25, 2025, with the final bidding deadline set for May 14, 2025, after which no applications will be accepted. Companies vying for the contract must deposit a security amount of NPR 35 million. Six international firms have already been shortlisted in the first phase of the selection process: China Banknote Printing and Minting Corporation (China), De La Rue International (UK), Giesecke+Devrient Currency Technology (Germany), Joint Stock Company (Russia), Oberthur Fiduciaire SAS (France), and Polish Security Printing Works (Poland).

These companies will compete in a tender process over the next two years. “Every two years, we start a new printing cycle, and these shortlisted firms can bid for each tender,” an NRB official explained. “The company offering the lowest bid wins the contract.” The current tender is specifically for the NPR 500 notes.

Currency in Circulation

As of now, NPR 640 billion worth of notes are in circulation across Nepal. Of this, NPR 1,000 denomination notes account for the lion’s share at NPR 453 billion, while NPR 500 notes currently total NPR 127 billion. The addition of NPR 115 billion in new NPR 500 notes will significantly boost this segment, addressing wear and tear of existing currency and supporting economic transactions.

The NRB’s tender system ensures cost efficiency and quality, with the six pre-qualified firms bringing global expertise to the table. Each time a denomination needs printing within the two-year cycle, the central bank will invite bids, allowing all shortlisted companies to participate. The winner will be tasked with delivering the 230 million NPR 500 notes, a critical component of Nepal’s cash-based economy.

Why It Matters

With cash still dominant in Nepal’s markets, maintaining an adequate supply of usable notes is a priority for the NRB. The NPR 500 note, widely used for everyday transactions, plays a key role alongside the NPR 1,000 note. “This printing cycle ensures we replace worn-out currency and meet circulation needs,” the NRB official added.

Following the May 14 bidding deadline, the NRB will evaluate proposals and award the contract, with printing expected to commence shortly after. As Nepal’s economy grows, the central bank’s proactive approach aims to keep pace with demand while leveraging competitive bidding to optimize costs. For now, the focus is on the NPR 500 notes—but with NPR 640 billion already in play, the next tender could be just around the corner.

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