Section 256: Prohibition of counterfeiting currency

1) No person shall counterfeit, or attempt to counterfeit, any currency.

2) A person who commits, or causes to be committed, the offence referred to in sub-section (1) shall be liable to a sentence of imprisonment for a term of five to ten years and a fine of fifty thousand to one hundred thousand rupees, having regard to the quantity and value of the currency counterfeited.

Explanation: For the purpose of this Chapter,-

(a) “currency” means any kind of currency note, postal order, postal note, money order, cheque, draft, traveler’s cheque, letter of credit, letter of exchange, bond and credit card, and this term also includes such other similar kind of monetary instrument as specified by the Bank, as required, by publishing and circulating a public notice.

(b) “counterfeit currency” means a currency which is so forged in an unauthorized manner or counterfeit as resembling or having reason to believe it to be a currency issued by the Government of Nepal or Nepal Rastra Bank or foreign government or competent foreign body.