Recently, Nepal Rastra Bank (NRB) had an internal discussion about the international payment system of Nepal. Following this, there were plenty of rumors that NRB will allow Nepalese to make international payments.
Nepal Rastra Bank is going to provide facility of foreign exchange for importing foreign services online. The Department of Foreign Exchange under NRB has prepared a proposal for the facility of foreign exchange for importing foreign services online and has also called for opinions and suggestions.
Through the first quarterly review of the monetary policy for the current fiscal year, the central bank had announced to make arrangements to import foreign goods and services up to a certain amount online and provide exchange facility in foreign currency to pay for it.
According to the NRB, commercial banks will be able to issue prepaid cards in convertible foreign currency of USD 500 or equivalent for the purpose of paying for import of services from abroad online.
NRB is going to make arrangements to issue such card by exchanging Nepali rupee in the bank account of the person, firm, company or organization who wants to get prepaid card of foreign currency.
NRB has stated that the user’s KYC should be updated and PAN number should be taken while issuing the card. Commercial banks can issue cards up to a maximum of USD 500 at the request of the customer, depending on the exchange rate on the day of issue.
There is a provision to deduct the tax incurred while purchasing services from abroad while issuing such card.
Users will be able to consume a maximum of US (पाँच सय) 500 worth of foreign currency once or twice a year. Users will be able to purchase online services in Nepal that are not prohibited by Nepal’s law.
NRB has requested all the concerned persons and bodies to provide necessary opinions, suggestions, support and feedback on the proposed arrangement by mid-December.
NRB is said to have approved the concept of a prepaid Dollar Card. With this, banks can now issue Prepaid Cards for international payment for goods and services. These are things to keep in mind:
1) Nepalese cardholders are allowed to deposit a maximum of $500 for international payment.
2) The existing fund in the Nepalese rupee in the respective bank account can be converted to foreign currency for that purpose.
3) Payment can be done only for the purchase of goods and services allowed by Nepalese laws.
4) Only one card can be made for international payment from only one bank by an individual or entity. Usage of multiple cards from multiple sources is a punishable act.
5) KYC and PAN are needed to apply for the Prepaid card.
6) If the cardholder is found to have generated foreign income amounting to at least double the card amount of $500, additional funds may be deposited to the card. This can be considered as NRB’s reward to the cardholder for generating international revenue for the country.