Travellers checks aren't used anymore, instead they are switching into visa debit cards.. I dont know about exchanging or accepting that form of payments, but as far as I know, they are planning to discontinue it, not only in Nepal, but other countries too! So yes, please carry cash or debit/credit cards works just fine! Last edited: 17-Nov-14 11:26 AM

This is around 2010. I took travelers check, that I should't have. Banks in Nepal charge 2% fee to exchange that and also you have to show your passport to them. My 2 cents carry cash. (the good part of travelers check is, in case of lost or stolen, you can get your money back.)