Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has extended the deadline for companies carrying out remittance transactions to maintain minimum paid-up capital for two years. Nepal Rastra Bank (NRB) has issued an amendment to the remittance bylaw-2079 BS to provide a minimum paid-up capital of Rs 250 million by Ashad end, 2087 BS.
Earlier, there was a provision that the remittance companies that had taken the license before the implementation of the bylaws had to be delivered by the end of July 2085.
The NRB has also eased the process of merger and acquisition of remittance companies for capital increase. The board of directors can make a preliminary decision on merger in special circumstances for companies that cannot increase their capital. The amended bylaws have made the process of due diligence audit report and share swap ratio determined on the basis of merger more transparent and systematic.
The new amendment has made it more clear and mandatory to have at least 3 years of being released from the blacklist of the Credit Information Center to become a director or office bearer of a remittance company. In the case of a person convicted of a criminal offense involving moral turpitude or corruption and fraud, the provision has been further tightened to prevent him from becoming an official until the completion of 5 years of his sentence.
Before revoking the license for remittance transactions, the Rastra Bank shall publish a thirty-five day public notice in the national level daily newspaper and on the website of the Rastra Bank. Earlier, there was a provision to publish it only in national dailies.
The role of the Foreign Exchange Management Department was mainly in the old by-laws. The new amendment 2082 has also brought the Department of Payment Systems under the ambit of understanding and responsibility. It seems to be trying to unify regulation between digital remittances and payment systems.
