Nepali currency is called Nepal Rupee and indicated as NRS or simply Rs. Nepalese Rupees exist in denominations of Rs 1, 2, 5, 10, 20, 50, 100, 500 and 1000. There are coins found in denominations of 5, 10, 25, 50 paise and Rs 1 and 2. One rupee equals 100 paise. Indian currency is also in circulation of Nepal except for the large bills of 500, 1000, and 2000.
Major foreign currencies such as US Dollars, Canadian Dollars, Euro, UK Pounds, Australian Dollars, Japanese Yen, Chinese Yuan, Hong Kong Dollars, etc. are accepted by hotels, airlines, and travel agencies. However, many businesses do not have a license to take the foreign currencies, and if you do business with them, you are required to pay in Nepali rupees.
You can exchange your money in banks or authorized money changers in the town. All tourist class hotels also offer money changing service, but the rates are not as reasonable as in banks. Please, do not forget to ask for the receipt of an exchange. Nepal has modern banking facilities, and some of the International Banks have their branches in Kathmandu.
Almost all foreign currencies along with credit cards such as Visa and Master Card, etc. are accepted in Nepal at major hotels, shops, and restaurants. American Express cards are not so popular, though. Check your credit card expiration dates if you are leaving for an extended journey.
When traveling around Nepal, change large bills whenever you can. Taxis, Bicycle Rickshaws, and small shops seldom have small bills. Do not be afraid to ask local shops for change, or you could buy a small item and present a big bill to get changes.
All major commercials banks of Nepal, including Standard Charted Bank, Nabil Bank, etc. are offering ATM service in its different branches in major cities of the country. You can get cash advances on both Visa and Master card. These ATMs are accessible 24 hours a day.