What amount of cash can we carry into Nepal without declaring? And btw, does a declaration mean anything more (taxes / source verification etc.) than just information?

I plan to take some money back home when I visit next time. Just wondering whether to carry cash or a demand draft. Or maybe use the credit card there. Which mode will likely have better rates?? Will appreciate your sharing of experience..

Why you send cash, someone will pay you nepali in Nepal and you pay cash here in us.

I'm going myself, not that I want to send it to someone. Any hassles taking / depositing cash there (if amounts are fairly high, say)??

They will not check the amount you have in your pocket . A friend of mine travelled with me , and he had 19k usd in his pocket. His pocket was little bumpy, so security officer asked him what  was that and he replied it's money. Also the officer asked the total amount and he said it was 4k.
And about credit card, if you swipe your card in Nepal, you will get extra charged for using outside United States ( if you are in US) unless the bank has special offers.

Thanks default06. I too guess using cc won't be a better option if conversion rates are considered.