Relation of Nepali and Indian Currency

Rupees in Nepal and Pakistan were worth the same amount. Early banknotes which were issued between 1945 and 1955 during the rule of King Tribhuvan were put into circulation by the Sadar Muluki Khana as Nepal did not have a Central Bank at that time. Notes issued under the reign of King Tribhuvan were therefore not signed by a bank governor, but by a Kajanchi (who also serves as a Hindu high-priest. As such, Nepal’s early paper currency probably include the only bank-notes in the world which were signed by a high-priest. These early notes were printed by the Indian Security Press in Nashik and do not have any security features, except for watermarks and the special paper on which they are printed.

The Indian rupee is the official currency of India. The rupee is subdivided into 100 paise though as of 2019, coins of denomination of 1 rupee are the lowest value in use. The issuance of the currency is controlled by the Reserve Bank of India. The Reserve Bank manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934.