Cash circulation in Nepal has increased significantly ahead of the Dashain festival, reflecting the seasonal rise in demand for physical currency. According to Nepal Rastra Bank (NRB), an additional Rs. 63 billion entered circulation during Ashwin.

Central bank data shows that cash in circulation stood at Rs. 794 billion at the end of Bhadra before climbing to Rs. 857 billion by Ashwin 28. NRB officials expect the amount to increase further as households prepare for Dashain celebrations and cash gifts. Despite the growing popularity of digital payments, physical currency continues to play an important role during the festive period.

Meanwhile, the public has exchanged approximately Rs. 13 billion worth of new and clean banknotes through Nepal Rastra Bank and commercial banks. Around Rs. 3 billion was exchanged through NRB’s Thapathali office and provincial offices, while commercial banks received Rs. 10 billion to facilitate note exchanges for customers.

NRB began providing banknote exchange services from Ashwin 1 for denominations of Rs. 5, Rs. 10, Rs. 20, Rs. 50 and Rs. 100. Each person can exchange one bundle of 100 notes from each denomination, amounting to a maximum total of Rs. 18,500.

The exchange facility remains available, and demand is expected to rise further as people prepare to distribute cash gifts during Dashain. The increase in currency circulation highlights the continued importance of cash transactions during Nepal’s major festivals, even as digital payment services become more widely used.