in foreign currency exchange. After its establishment, before operating accounts of any other banks in Nepal, Nepal Rastra bank opened its first bank account in the Reserve Bank of India. To open its bank account in Reserve Bank of India, the then Governor Himalaya Shumsher JB Rana sent a letter to then India’s secretary of economic affairs, Braj Kumar Nehru and in the direction of Nehru, the first account of NRB was opened there. Subsequently, NRB opened its account in another bank of India and then in one bank of London. The early banknotes issued during the rule of King Tribhuvan were not circulated by a Central Bank but rather was initially held by His Majesty’s Government, then called the Government of Nepal, through the “Sadar Muluki khana” (Central Treasury) from September 1945 through February 1960 and were signed by a Kajanchi (head of the treasury). After, this the responsibility was handed over to the NRB. For this purpose, the NRB had set up the Note Department in September 1956 which was renamed as the Currency Management Department in November 2002. On Feb. 19, 1960, NRB released its first bank notes in the denomination of Mohru 1. The signature on the bank notes were replaced by the governors of central bank rather than the head of treasury in all bank notes issued in the country after this date. Initially, the central bank of Nepal was founded under the Nepal Rastra Bank Act, 1955 which stated that the primary responsibility of the bank was to ensure “proper management for the issuance of the Nepalese currency notes”. Later, the Foreign Exchange Regulation Act, 1963 enacted, NRB as the custodian of foreign exchange reserves of the country. Nepal’s choice for a fixed exchange rate with Indian Currency along with supporting government policies contributed significantly in stabilizing confidence in both the domestic currency and in exchange rate among the local traders. Additionally, during this decade, the national policy of relations with foreign institution were implemented which created the foundation for membership with international organization such as the International Monetary Fund (IMF) and the World Bank (WB) in 1961. Because of these policies, Nepal Rastra bank succeeded in the circulation of the new Nepalese rupee as the legal tender in Nepal's Terai region which was predominated by Indian currencies and facilitated for the elimination of the dual currency period in 1964 in the country and