Making an international payment in Nepal was not easy before but Nepal Rastra Bank is making a way to make it possible very soon. Before it was not easy to make any payments in foreign currencies to purchase goods and services online such as online shopping or purchasing goods from foreign countries. That’s the reason, people were finding difficulties in making an international payment in Nepal till now.
Future of International Payment in Nepal
To cope up with the illegal ways of making international payments in Nepal so-called hundi Karobar, Nepal Rastra Bank has approved a concept that will definitely make things legal soon in the future.
Based on point number 66 of 2077-78 first-quarter review, NRB has prepared a consultation document which dictates NRB has approved the concept of an online payment system that will make it Nepalese people easy to carryout International Payment soon in near future. According to the document, it will be possible for Nepalese people to buy things online or avail online services as permitted by the Government of Nepal by paying online using foreign currencies. So, what is the proposed solution to make international payment in Nepal? NRB has allowed the NRB approved banks to be able to issue a prepaid card loaded with a maximum of 500 USD or any other foreign currency equivalent to the aforementioned amount.
After approving the concept of international payment in Nepal using a prepaid card of a maximum of 500 USD or equivalent foreign currency, NRB had called concerned bodies for consultation and concluded the following 11 points to be mandatory requirements for people to avail of such prepaid cards. Based on the following rules and regulations, any individual or institution/company can avail of such prepaid cards to be able to make international payments in Nepal.
Mandatory points to get a prepaid card for the international payment
- Individuals or institutions/companies should have a local currency account in an NRB approved bank and shall have submitted a KYC form and a permanent account number (PAN) to the same bank where they have their account. Banks can issue the prepaid card against the same local currency account and no additional account or foreign currency account is needed.
- When issuing the prepaid card, a bank can convert the local currency into a maximum of 500 USD or any other foreign currency of equivalent amount based on the current exchange rate. The bank shall deduce the tax amount in advance (before issuing the card) that can be applied while availing online services of a maximum of 500 USD.
- Users can use this amount (500 USD) at once or multiple times during 12 months. That means users can use a maximum of 500 USD or any other foreign currency of equivalent amount in a year only.
- Users can buy things online from Nepal or can avail of any other online services as permitted by the government of Nepal. It means that users can’t buy things that are illegal in Nepal or not permitted by the government of Nepal.
- If a user has availed a prepaid card of less than 500 USD, then he/she can add more amounts not exceeding 500 USD anytime within a year.
- If a user can earn a foreign currency equivalent to 500 USD using the prepaid card of 500 USD, then he/she will be allowed to add 500 USD amount to his/her card showing evidence of the foreign currency income.
- Users availing such service from a bank should self-declare that he/she has not availed the same service from anywhere else.
- While depositing the foreign currency in the prepaid card it will not be allowed to deposit on others name or others prepaid card. One should deposit the amount by him/herself in his/her prepaid card.
- It is punishable if anyone found availing such service from more than a bank
- While availing of such service one should be aware of and bound by the famous money laundering act 2064 of Nepal.
- Banks issuing such prepaid cards should submit a monthly report of every transaction made by each card to the Nepal Rastra Bank not later than a week of the next month.
Based on the consultation document, we hope that this will come true very soon in the future. If approved, we will be finally able to make international payments soon and be able to buy goods online or avail of any of the online services so easily.
Personally speaking, I am eagerly waiting for it since I faced a lot of challenges regarding international payment. I had to pay for renewal fee for my web domain and WordPress hosting hosted in the GoDaddy account but I could not do and the result was I had to migrate the domain and hosting account to a Nepalese registrar and Webhosting provided to get rid of the international payment issue in Nepal. I Hope, after approval of the new NRB’s concept problems like above, will be solved permanently.