The exchange rate is 1INR = 1.6 NPR everywhere. Indian currency is acceptable everywhere including hotels, small shops and even tea shops. There wouldn't be an issue.Thanks a lot @Khagesh
Another question comes immediately to mind - it's about the currency. Read somewhere, might be in your log also, that INR500 and 2000 notes are not accepted there. In that case, is it the only option to carry a lot of INR100 notes? Also heard that there is SBI ATM in Kathmandu. Can you say whether Indian debit cards can be used there? And will those ATMs dispense NPR or INR for Indian debit card?
What is the exchange rate for INR in the market? The official rate may not be honoured.
Yes, officially 500 and above denomination wouldnt be acceptable but they will take. No issues. Excepting may be when buying air ticket and so on.
What is very important is that SBI ATM card only works. Nothing else. Since it is a family trip best is to carry currency notes. No issues. Nepal is much much safer. As you know I was solo, on bike, in interior parts of the Nepal both on Annapurna and Saagarmaatha areas. The safety level is much much higher than in India. Sad though.
Another important information which might help you. For identity our Aadhaar Card will not work since no where in Aadhaar Card our citizenship is mentioned, that another curious thing. Carry passport, and if not voder ID card would do. This is very very important especially when buying airticket. Indians, Foreigners and Nepalese all have different air fares.