Last week I crossed into Nepal from India (Banbasa crossing). I had 25 dollars for my Visa but they were not in pristine condition. Border officials asked if I have some more dollars as they would like bills in better condition. I asked if I can pay in Indian Rupees. They said "yes" and gave me the price in this currency. I did not have enough Rupees and only asked them out of curiosity.
So it turns out that you can pay for Nepali Visa in Indian or Nepal Rupees, not only in Dollars or Euro. At least at this crossing.
