Nepal sambat was started by Sankhadhar Sakhwa which is still in use because most of the festivals are celebrated according to the calendar. He paid off all the debts existing at that time in the country and introduced a new era into the country called Nepal Samvat. It is a lunar calendar consists of 354 days per year and an added one month every third year.
During the reign of Thakuri king Raghabdev, this calendar came into being immediately after the completion of Mandev Sambat 304 (881 AD). This calendar was in official use in Nepal for 888 years, i.e., from 881 to 1769 A.D. in Malla and early Shah era. Later, it was replaced by Bikram Sambat as the national calendar.