International Payment in Nepal: NRB ensured Nepalese Can Finally Make International Payments
Last Updated on by Sumi
NRB has ensured International Payment in Nepal and ended all the hassles bringing a relief to the customers. Are you thinking of buying a product from the ecommerce sites like Amazon? Do you want to make your payments for your own online ads? Hurray! You can now make international payment in Nepal.
On 28th of December, 2077, Nepal Rastra Bank (NRB) published a consultation Document in its official websites ensuring the provisions of international payment services through online medium. The provision has brought relief among many people as this provision was an awaited one.
In this notice, with respect to the 66th point of the first quarter review document for FY 2077/78, it was quoted “ Arrangement will be made for international payment from Nepal and conversion of currency for limited purchase/ import of foreign goods and services online”.
An international payment method equivalent to PayPal or Payneer is coming soon. Yes, you read it right.
With this introduction, Nepalese can make payments for the international product or services they use. You can easily get Netflix subscriptions, pay for Coursera or Udemy courses, pay for your own ads, buy products from sites like Amazon, Alibaba etc.
International Payment in Nepal: The Road to this decision
Back on Jestha 06, 2076, NRB had released a notice stating, “Any payment made from the use of QR Code, POS Machine or other Payment System (like WeChat Pay, Alipay, etc), made through the institutions except sanctioned by the central bank are considered illegal.”
Since then, the hassle has been in apex. Neighboring citizens were enjoying Paypal, Whatsapp Pay, and other international payment services, but we were lacking the facilities in spite of dire needs to make an international payment system for the advancement of e-commerce, access to international education and make foreign purchases/imports.
NRB Governer Maha Prasad Adhikari shared, “NRB is soon making provision to allow Nepalese to open their dollar account up to $500 in the balance, to make payments on the purchase of foreign goods/ services for domestic consumption or running business.” back on the Digital Economy Conclave on 28th of November. Sticking to this assurance, NRB has finally come up with the decision to introduce an international payment gateway for Nepalese consumers”.
International Payment in Nepal: How was the scenario before the desicion?
Digital business has got popularity in Nepali Markets in recent years. Advertising through social media and digital mediums like Facebook, Instagram, Youtube, Google, etc. has been more in practice which is done on foreign currency (usually on USD).
Similarly, from gaining an international academic certificate to domain registration and web hosting, Facebook page boosting, to subscription of various apps and services, petty payment with foreign currency conversion was not easily possible.
To date, we could only make the purchases of foreign goods and services from Nepal to the extent of $2,000 in a year via our debit/credit card. And even this was not easier because of lack of international payment in Nepal for Nepalese consumers.
Commercial banks have to get recommended by the central bank to make payments from $3,000 to $10,000 on behalf of Client’s request.
Nepalese have been using Paypal and Payoneer cards of their relatives living abroad, which had been identified as “Digital Hundi” by NRB as it had been escaping the tax revenue collection to the government from these transactions and impliedly promoting “Shadow Economy”.
International Payment in Nepal: What were the alternatives for payments before?
- Travel Card issued on US Dollar where the visa is mandatory and one would get the card with a limit of $1500 one time only
- Payoneer cards that require bothersome procedures
- American Express Card, which is issued by Himalayan Bank Limited (HBL) only in Nepal, with a limit of NRS 40,000 to NRS 50,000 (only for limited clients)
International Payment in Nepal: What are allowed?
NRB has adapted the concept of digital economy well and made these arrangements for payments. It has come late, but it doesn’t mean its not good. It is expected that Nepal can make an astonishing achievements, with the decision, NRB has ensured international payment in Nepal.
Banks can now issue Prepaid Cards for international payment of goods and services with a maximum limit of $500.The following are the provisions that NRB has allowed for Nepalese:
- Any person, firm, company, or organization willing to get a prepaid card on foreign currency can get it by converting their existing fund in NRS to the foreign currency from the banks.
- For issuing this card, users must have updated their KYC from the respective banks and should have a PAN number.
- Users can enjoy this service at a maximum of $500 either through one transaction at a time annually or time and again
- Users can only import/purchase the products/services that have been allowed by the prevailing law.
- 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.
Get more information here.
We welcome and embrace this effort and decision from the NRB. Thank you for making this possible in Nepal. We can make an announcement now, “NRB has ensured international payment in Nepal”.
Related Article posted earlier:
NRB prepares to open up to $ 500 international payments through wallet
