Nepal runs on rupees and the banking infrastructure stops abruptly where the serious altitude begins. Kathmandu and Pokhara have full banking systems with reliable ATMs from Himalayan Bank, NIC Asia Bank, and Global IME Bank. These same banks operate ATMs in Namche Bazaar at 3,440 meters, the last point where electronic money matters. Beyond Namche the economy reverts entirely to cash. No ATMs function at Tengboche, Dingboche, Lobuche, or Everest Base Camp. Trekkers heading into Khumbu or Annapurna high routes must calculate their full cash requirement before leaving the last banking town and carry physical rupees for every lodge night, every meal, every porter tip, and every emergency buffer across two to three weeks of walking.
The calculation is not theoretical. A basic teahouse bed costs 500 to 1,000 rupees depending on altitude. Meals range from 800 rupees for dal bhat in Namche to 1,500 rupees for the same dish at Gorak Shep. Boiled water, battery charging, hot showers, and wifi all carry separate fees that compound daily. A conservative Everest Base Camp trek budget runs 8,000 to 12,000 rupees per day above Namche, meaning a trekker needs 110,000 to 170,000 rupees in physical notes for a fourteen-day circuit. The maximum single ATM withdrawal in Nepal is typically 35,000 to 50,000 rupees depending on the bank and your home institution's limits. Multiple withdrawals are standard practice before departure.
Credit cards function in Kathmandu hotels and some Thamel restaurants but carry surcharges between three and five percent. Visa and Mastercard have broader acceptance than American Express. In trekking regions credit cards are decorative. Authorized currency exchange operates through banks and licensed moneychangers in Thamel. Street exchange is illegal and rates are worse. The Nepal Rastra Bank publishes daily official rates. US dollars in clean, undamaged bills exchange easily. Euros exchange but at slightly less favorable spreads. Torn or heavily worn foreign notes are often refused.
Carrying large cash sums in the Himalayas is not comfortable but it is the operational reality. Money belts, hidden pockets, and splitting cash between porter and personal pack are common strategies. Lodges have limited security. Most trekkers carry their full cash load on their person during the day and sleep with it at night. The system has not modernized because the infrastructure cannot reach 5,000 meters. Plan as if electronic payment does not exist above Lukla and you will calculate correctly.