1 Rupee

Nepal's first decimal-era rupee notes replaced the older mohar-based system following the country's formal currency decimalization in 1961, but low-denomination printing contracts were slow to fully standardize. This 1 Rupee issue, produced by Thomas De La Rue under a long-standing contract with Kathmandu, falls within the reign of King Birendra's immediate predecessor — Mahendra Bir Bikram Shah — and the transition between the two reigns in January 1972 means examples from this series can reflect either king's authorizing government, depending on date.

The watermark remains the primary security feature, consistent with De La Rue's economical approach to small-denomination notes where intaglio printing was typically reserved for higher values.