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The first coins weren't issued in Nepal until the sixth century AD when the Licchavi kingdom of Nepal issued copper coins bearing religious designs of Indian origin. Coins were infrequently issued between the eight and seventeenth centuries. During the mid-seventeenth century, the three Malla kingdoms began issuing silver tankas in large quantitites. Patan coins were distinguished by a star, Bhatgaon coins by a triangle and Kathmandu coins by wavy lines. During the mid-eighteenth century, Nepal issued the smallest gold coins ever used: gold 1/2048 mohars weighing 0.002 grams. Nepal exported their silver coins to Tibet until the late 1700s.

The Kingdom of Nepal was unified on September 25, 1768 by Prothvi Narayan, the Shah ruler of the kingdom of the Gorkhas. From 1775 to 1951 Nepali politics was characterized by conflict between the royal family and several noble families. The British conquest of India forced the Nepali rulers to seek an accommodation with the British to preserve their independence.

Nepal issued Gold Mohar (NPM) and silver Dabals, but a scarcity of coins led to the introduction of Indian Rupees (INR) in the 1800s. The Gold Mohar was divisible into 30 Silver Mohars or 1500 Paisa. The silver Mohar had the same weight as the Indian Rupee and was at par with it.

The Nepal Rupee replaced the Mohar/Paisa in 1932. Since the Nepal Rupee had a lower silver content than the Mohar, it traded at a slight discount to the Indian Rupee with 1.28 Nepal Rupees = 1 Indian Rupee in the 1920s, 1.54 Nepalese Rupees by 1939, but appreciated to 0.65 Nepalee Rupeesduring World War II. In 1951, Nepal issued its first banknotes, denominated in Nepalese Rupees (NPR) which were valued at 1.28 Nepalese Rupees = 1 Indian Rupee, though the market rate was about 1.60 Nepalese Rupees = 1 Indian Rupee. The Rupee was divisible into 100 Paisa.

Because Nepalese citizens exchanged Nepalese coins for Indian currency, this created a drain on Nepal's silver resources, leading to the introduction of Nepalese banknotes on June 1, 1945. The Government of Nepal issued banknotes from 1950 until 1960, and the Nepal Rastra Bank, established on April 26, 1956, has issued banknotes since 1960. The Foreign Exchange Regulation Act prohibited the use of Indian currency for internal payments, though the act was initially enforced only loosely outside of cities in the Kathmandu valley. By 17 October 1966, enforcement had spread to the whole country. The Indian rupee ceased to be legal tender on October 17, 1966.

This note is valued at 1 Rupee and is undated. The note is blue on purple and gold underprint. The obverse features the portrait of King Birendra Bir Bikram in military uniform with a dark cap on the left, and a temple building inthe center. The reverse is blue and brown, and depicts two musk deer jumping over rocks in the center, and coat of arms in the upper right corner. The note has a watermark showing a plumed crown.

• Krause# Pick-22
• Signature: 9 - Kul Shekhar Sharma

Here is a 2 Rupee note issued from 1981 to 1987. The note is green on light blue and lilac underprint. The obverse features King Birendra Bir Bikram wearing a plumed crown to the left, with a temple in the center background. The reverse is multicolored and shows a leopard in the center. this note has a watermark that depicts a plumed crown. This note has signature #13, making the attribution 29b.

• Krause# Pick-29b
• Signature: 13 - Satyendra Pyara Shrestha

This is a 5 Rupee note that is undated but printed sumetime after 1987. The note is brown on red and multicolored underprint. The obverse features King Birendra Bir Bikram wearing a plumed crown to the left, and a temple building in he center. The reverse is red and brown and depicts two yaks in the center and coat of arms in the upper right corner. This note has a watermark of a plumed crown.

• Krause# Pick-30a
• Signature: 13 - Satyendra Pyara Shrestha

This note is a 1 Rupee note issued from 1991 to 1996. The note is purple and dull blue on multicolored underprint. The obverse shows King Birendra Bir Bikram wearing a plumed crown to the left, with a Temple in the center background. The reverse is blue and brown and shows two musk deer at the center with the coat of arms in the upper right. This note has signature #13.

• Krause# Pick-37
• Signature: 13 - Satyendra Pyara Shrestha

This note is a 5 Rupee note issued in 2002. The note is red and brown on multicolored underprint. The obverse depicts a portrait of King Gyanendra Bir bikram to the left with a temple shown in the center background. The reverse shows mountains int he background with the Yaks in a grassy field. This note has signature #15.

• Krause# Pick-46
• Signature: 15 - Dr. Tilak Rawal

Here is a 10 Rupee note issued on September 9th, 2002. This note was issued on the occasion of King Gyanendra Bir Bikram Shah Dev's accession to the throne in BS 2058. The note is NOT P-45, as P-45 has a horse-shoe shaped window surrounded with text. This note is a later issue not yet in the Krause books for attribution.

• Krause# Pick-Not Yet Listed

This note is dated 2008 and valued at 20 Rupees. This note is not yet listed in the Krauss publications.

• Krause# Pick-Not Yet Listed