Act to Provide for Enhancement of the Circulation of Nepalese Currency, 2014

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Circulation of currency act
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Act to Provide for Enhancement of the Circulation of Nepalese Currency,
2014(1957)

Date of Royal Seal Date of Publication in Nepal Gzette
2014.2.29(12-7-1957) 2014.4.7(22-7-1957)
Date of Authentication and Publication
Republic strengthening and some Nepal Laws
Amendment Act, 2066(2010) 2066.10.7(21-1-2010)
Act Number 3 of the year 2014
………………..1
An Act Made for the Enhancement of Circulation of the Nepalese Currency
Whereas, it is expedient to enhance the circulation of the Nepalese currency
throughout Nepal for the purpose of consolidating ad balancing the economy of
the country on the basis of the same currency;
Now, therefore, His Majesty the King has, on the advice of the Council of
Ministers, made and issued this Act.
1. Short title, extension and commencement: (1) This Act may be called as
the Act Enhancing the Circulation of the Nepalese Currency, 2014.
(2) This Act shall commence in such area and on such date as
may be specified by the Government of Nepal by a notification in the Nepal
Gazette.2
1 Repealed by Republic strengthening and some Nepal Laws Amendment Act, 2066(2010)

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2. Definitions: Unless the subject or the context otherwise requires, in this
Act:
(a) “Nepalese currency” means currency notes issued by the
Government of Nepal or the Nepal Rastra Bank and Mohars,
Rupees, Rechaki or Paisas issued by the Government of Nepal.
(b) “Foreign currency” means any currency other than the Nepalese
currency.
3. Value or fee wage etc. amount may be paid in the Nepalese currency: If
a person, while paying any amount in consideration for the value of
purchase or sale of any goods to another person or fee wage, remuneration,
fare or similar other amounts to another person in a place where this Act
has come into force, tenders such payment in the Nepalese currency or if
such person tenders the Nepalese currency at the exc ange rate specified by
the Nepal Rastra Bank on the day of making such payment despite that
such payment has been specified as to be payable in a foreign currency,
such payment has to be received.
Provided that this Section shall not apply to any transaction and dealing
with the Government of Nepal.
4. Payment of amount of transaction made in foreign currency in
Nepalese currency: If a person who has to make payment in relation to
2 Place and date of commencement of the Act:
(1) Commencement on 2017.1.1 in the Kathmandu Valley, east 1, 2, 3, and 4 numbers, west 1, 2, 3 and 4 numbers, Dhankuta, Palpa, Baglung, Salyan, Jumla and Dailekh Districts (Nepal Gazette
dated 2017.1.27).
(2) Commencement on 2018.3.1in Ilam and Baitadi Districts (Nepal Gazette dated 2018.2.32). (3) Commencement on 2018.5.1 in Doti District (Nepal Gazette dated 2018.4.30). (4) Commencement on 2022.9.1 in all the rest Districts (Nepal Gazette dated 2022.8.30).


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any transaction made in a foreign currency immediatly in any place where
this Act has come into force tenders such payment in the Nepalese currency
at the rate prevailing in the Nepal Rastra Bank on the day of tendering of
such payment, such payment has to be received.
5. Saving: The foregoing Sections 3 and 4 shall not apply to the Government
of Nepal and those persons or organizations and dealings authorized by the
Government of Nepal.
6. Punishment: If any person does not receive the Nepalese currency
tendered for payment by a person pursuant to Section 3 r 4, that person
shall be liable to punishment of fine of Rs. 100 (one hundred rupees) to Rs.
1,000.00 (one thousand rupees).
7. Power to frame rules: The Government of Nepal may frame rules to
implement the objectives of this Act.