The rupee is the official currency

Currency

In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 of Nepal

Nepal

Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

. The present rupee has the ISO 4217

ISO 4217

ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...

 code NPR and is normally abbreviated with the sign ₨. It is subdivided into 100 paisa. The issuance of the currency is controlled by the Nepal Rastra Bank

Nepal Rastra Bank

The Nepal Rastra Bank , established in 1956, is the central bank of Nepal. It has seven offices, located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj, and Dhangadhi....

. The most commonly used symbol for the Rupee is Rs or ₨.

History

The rupee was introduced in 1932, replacing the silver mohar

Nepalese mohar

The mohar was the currency of Nepal from the second half of the 17th century until 1932. Silver and gold mohars were issued, each subdivided into 128 dams. Copper dams were also issued, together with copper paisa worth 4 copper dams. The values of the copper, silver and gold coinages relative to...

 at a rate of 2 mohar = 1 rupee. Initially, the rupee was called the mohru in Nepalese. Its value was pegged to the Indian rupee

Indian rupee

The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....

 in 1993 at a rate of 1.6 Nepalese rupees = 1 Indian rupee.http://users.erols.com/kurrency/asia.htm

Coins

In 1932, silver 20 and 50 paisa and 1 rupee coins were introduced, followed by copper 1, 2 and 5 paisa between 1933 and 1935. In the 1940s, copper ¼ and ½ paisa and nickel-brass 5 paisa were added. In 1953, a new coinage was introduced consisting of brass 1, 2 and 4 paisa, bronze 5 and 10 paisa, and cupro-nickel 20, 25 and 50 paisa and 1 rupee. The 20 paisa was discontinued after 1954.

In 1966, aluminium 1, 2 and 5 paisa and brass 10 paisa were introduced. Aluminium 25 paisa coins were introduced in 1982, followed by stainless steel 50 paisa and 1 rupee in 1987 and 1988. In 1994, smaller 10 and 25 paisa coins were issued, alongside aluminium 50 paisa and brass-plated-steel 1, 2, 5 and 10 rupaiya..

Banknotes

In 1951, the government introduced notes for 1, 5, 10 and 100 rupees, with the name mohru used in Nepalese. The State Bank took over note issuance in 1956 and, in its second issue, began using the name rupee in the Nepalese texts. In 1972, 500 and 1000 rupees notes were added, followed by 50 rupees in 1974 and 2 rupees in 1981, after the discontinuation of production of 1 rupee notes (some are still in circulation). 20 rupees notes were introduced in 1982. 1 and 2 rupees notes are no longer produced, although previously issued ones are still in circulation. The 1 rupee note has a picture of Ama Dablam

Ama Dablam

Ama Dablam is a mountain in the Himalaya range of eastern Nepal. The main peak is , the lower western peak is . Ama Dablam means "Mother's necklace"; the long ridges on each side like the arms of a mother protecting her child, and the hanging glacier thought of as the dablam, the traditional...

, one of the neighbours of Mt. Everest, on its reverse side.

For the 2 rupees with a symbol of Indian god on aside and with mantra on the top on the left is the most valued that can be auction at $39,000 USD and above. This note now readed from the Nepal National Bank only left less then 180 note. The only note that really valued from year 1832-1867.
There are also 25 and 250 rupee notes commemorating the Silver Jubilee

Silver Jubilee

A Silver Jubilee is a celebration held to mark a 25th anniversary. The anniversary celebrations can be of a wedding anniversary, ruling anniversary or anything that has completed a 25 year mark...

 of Birendra Bir Bikram Shah

Birendra of Nepal

Birendra Bir Bikram Shah Dev was a King of Nepal. The son of King Mahendra, whom he succeeded in 1972, he reigned until his death in the 2001 Nepalese royal massacre...

 in 1997.

Since 2007, Nepalese rupee banknotes have been produced by Perum Peruri

Perum Peruri

Perum Peruri is the Indonesian state banknote/security printers and mint, established on 15 September 1971 through the merger of state mint Artha Yasa and state printers Pertjetakan Kebajoran ....

, the National Mint Public Company of Indonesia

Indonesia

Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

. http://majalah.tempointeraktif.com/id/arsip/2010/05/03/EB/mbm.20100503.EB133448.id.html