For Suvekshya Bhattarai of Biratnagar, birthdays and festivals such as Raksha Bandhan, Teej, Dashain and Tihar increasingly come with a familiar sound: a notification on her phone announcing that money has arrived in her account.

Rather than sending physical gifts, her siblings living in Nepal and abroad often transfer money directly to her digital wallet or bank account. The gifts are a modern take on dakshina, the money traditionally given to younger family members during festivals and other celebrations.

“I received Rs8,000 in my eSewa wallet on the day of Dashain Tika three years ago. I was surprised all day, wondering where the money had come from,” Bhattarai recalled. “That evening, my brother Otshal, who lives in Finland, called and told me he had sent me dakshina. It was the biggest amount I received that Dashain.”

It was her first experience of receiving digital dakshina. Since then, Otshal and her sister Oshin Puri in Finland, along with another brother, Bikrant Giri, who lives in Australia, have regularly sent her money on birthdays and during festivals.

“Sometimes they send it through eSewa, sometimes Khalti, and sometimes directly to my NIC Asia Bank account. Of course, I’m happy to receive it,” she said.

She usually spends the money on shopping but saves some of it, too. “If I received cash, I’d probably spend it all. With digital dakshina, it’s easier to save. I’m sure I’ll receive some this Dashain, too.”

Bhattarai’s experience reflects a broader shift in how Nepalis exchange gifts and money during festivals. Digital wallets, mobile banking and QR codes are increasingly offering cash alternatives tucked into envelopes or handed over during Tika rituals.

The shift is particularly visible during Dashain and Tihar, Nepal’s biggest annual festivals, when families gather, relatives exchange blessings and gifts, and people working abroad send money home.

Prabin Regmi, chief executive officer of Khalti IME Limited, says digital transactions tend to rise sharply in the days before major festivals, when people are still working, and businesses remain open. Activity then settles during the holidays, before picking up again on Dashain Tika Day.

“Digital dakshina is particularly popular on Dashain Tika Day,” Regmi said.

The practice is more established within immediate families than among extended relatives, however. Cash remains the preferred gift in many social settings, particularly when visiting in-laws, where offering money in an envelope remains customary.

“People are still hesitant to make digital payments in those settings,” Regmi said. “The traditional practice of putting cash in an envelope remains more common.”

Payments made directly into bank accounts and digital wallets by relatives living abroad are another growing part of the trend.

During Dashain and Tihar, many Nepalis travel to their hometowns and send money to family members, contributing to higher digital transaction volumes than at other times of the year, said Munni Rajbhandari, chief operating officer of Nepal Clearing House Limited.

Digital wallets and financial institutions have also been promoting digital dakshina through marketing campaigns and festival offers.

“Digital dakshina is not yet widespread, but its use is growing,” Rajbhandari said.

The Covid-19 pandemic accelerated the adoption of digital banking, said Bikash Shrestha, a senior relationship manager at Machhapuchchhre Bank. As more people began sending gifts and festival money through QR payments and mobile banking, banks introduced cashback offers to encourage the practice.

Some promotions offer cashback when users send money to their sisters through mobile banking on Raksha Bandhan or transfer digital dakshina after receiving Tika during Dashain.

The appeal is straightforward: people can send money instantly without having to withdraw cash, visit a bank or arrange a physical gift. For families separated by international borders, it also makes festival giving easier.

But the move towards digital payments brings security concerns, particularly during periods of heavy transaction activity.

Banks and financial institutions increase their efforts to warn customers about digital fraud, phishing and the theft of one-time passwords, or OTPs, during the festival season.

“Digital technology offers convenience, but it also carries risks,” Shrestha said. His bank uses social media posts, videos and other awareness campaigns to help customers recognise and avoid scams. The Fintech Alliance Nepal and banks are also running public awareness initiatives, he said.

The overall pattern of digital transactions during Dashain is more complicated than a steady increase throughout the holiday period.

Amit Agrawal, president of Fintech Alliance Nepal, said digital payment activity typically peaks by Saptami, the seventh day of Dashain, before declining as public holidays begin and commercial activity slows.

Overall payment volumes can fall by as much as 50 percent during the holidays, he said.

Fund transfers are especially common on Dashain Tika Day, when elders give money and blessings to younger family members, and on Bhai Tika, when brothers and sisters exchange gifts.

“Fund transfers are the most widely used payment method, followed by scan-and-pay transactions through QR codes,” Agrawal said.

Fund transfers rise by around 10 percent on Tika Day as relatives send money and gifts to one another, he said. After the holidays, transaction activity recovers to about 70 percent of normal levels before returning to usual levels.

Other digital services also see seasonal shifts. Mobile data package sales tend to rise as people travel for festivals, while spending on cinema and other entertainment depends more on film releases than on the Dashain holidays themselves, Agrawal said.

For decades, getting fresh banknotes was an essential part of Dashain preparations. Families exchanged old notes for crisp currency to give as dakshina, often standing in long queues at Nepal Rastra Bank, the central bank.

That tradition is gradually changing as digital payments become more accessible. The central bank has repeatedly urged the public to use digital payment methods where possible and handle banknotes carefully to reduce damage and waste.

Mohan Kumar Dahal of Budhanilkantha said he used to spend hours queuing at the central bank to exchange notes for Dashain and Tihar. Now, he sends money to his nieces and nephews through QR payments, while continuing to give cash to relatives who do not use the technology.

“I still give cash to my sisters and brothers-in-law who do not use QR payments,” Dahal said.

He no longer needs to visit the bank regularly because he can withdraw the small amount of cash he needs from an ATM. This year, he said, being able to withdraw Rs100 notes directly from ATMs has made things even easier.

Nepal Rastra Bank continues to advise the public to use banknotes carefully, avoid writing or drawing on them, keep them dry and refrain from stapling them. Digital payments offer an alternative when cash is not necessary.

The shift is not only about convenience. It also reflects the growing reach of digital payment infrastructure in everyday life, from retail purchases and family transfers to charitable donations.

Data from Nepal Rastra Bank show how quickly digital payments have expanded in recent years.

In the first month of the current fiscal year, 2026-27, which began in mid-July, mobile banking transactions totalled Rs580.56 billion across 78.65 million transactions. Digital wallets processed Rs48.59 billion through 53.01 million transactions, while QR-based payments accounted for Rs164.42 billion across 72.44 million transactions.

Three years earlier, in the final month of fiscal year 2023-24, mobile banking transactions totalled Rs373.78 billion across 45.67 million transactions. Digital wallet transactions amounted to Rs38.15 billion, while QR payments totalled Rs61.73 billion across 32.11 million transactions.

The figures show particularly rapid growth in QR payments. Over the three years, the number of QR transactions increased by 125.6 percent, while their total value rose by 166.33 percent. The value of mobile banking transactions grew by 55.24 percent, while that of digital wallet transactions increased by 27.39 percent.

QR payments have made it easier for people to transfer money directly, whether they are paying a shopkeeper, helping someone in an emergency or contributing to a social cause.

Their usefulness was evident after the devastating Bhotekoshi floods on August 26, when digital payment platforms helped collect relief funds for affected communities and reconstruction.

Billions of rupees in donations were collected for the Prime Minister Disaster Relief Fund through QR codes and other digital channels operated by services including Fonepay, Nepal Clearing House Limited and eSewa. The systems allowed members of the public and international donors to contribute without visiting a bank, while making transactions easier to track.

The response highlighted the growing role of digital payments in charitable giving, a practice increasingly described as digital philanthropy in Nepal.

The user base for these services has also expanded dramatically. Digital wallets had 28.3 million users in Nepal, up from 6.3 million in 2020, according to the Fintech Alliance Nepal. Mobile banking users have exceeded 30 million, the alliance said.

Monthly QR transactions, which numbered fewer than 200,000 in 2020, have now reached 59.3 million, according to the alliance.

As digital payments become woven into daily life, the same technology is reshaping a deeply personal part of Dashain: the exchange of money as a sign of affection, blessing and family connection.

For Bhattarai, the change has made it possible for siblings living thousands of kilometres away to remain part of her celebrations. A notification on her phone may not carry the ceremony of an envelope handed over after Tika, but the gesture still travels across borders, bringing a little of home with it.