Kathmandu. Nepal Rastra Bank (NRB) has increased the limit on payment and exchange of foreign currency in various transactions and services.
The Nepal Rastra Bank (NRB) has amended the Integrated Circular-2082 to increase the payment and exchange facility of foreign currency required for transactions and services abroad. The central bank has now directed the banks and financial institutions to follow the amended provision.
According to the amended provision, banks and financial institutions will be able to send advance payment up to $ 5 lakh on the basis of documents including the recommendation of the concerned regulatory body (Civil Aviation Authority of Nepal) while importing goods such as aircraft engines and parts. However, for this purpose, the bank guarantee of a foreign bank will not be required. Earlier, such a limit was limited to $ 1 lakh.
Similarly, banks and financial institutions can provide exchange facility up to US $ 30,000 annually to Nepali citizens for the purpose of going to a hospital abroad for treatment and purchasing necessary medicines and treatment equipment. Earlier, this facility was up to $ 15,000.
Now, the banks and financial institutions themselves can pay up to 5 lakh US dollars annually for the lease of satellite service by signing an agreement with foreign service providers. Earlier, there was a limit of up to $ 100,000.
Similarly, the commercial banks can now avail the facility up to USD 30,000 or equivalent in convertible foreign currency per time by obtaining the necessary documents on the basis of the approval of the agreement or agreement from the regulatory body or the recommendation of exchange.
For payments above US$ 30,000 or other convertible foreign currency each time, the exchange facility should be provided only on the basis of the approval of the Foreign Exchange Management Department of the Rastra Bank with the recommendation of the regulatory body. Also, in the absence of a regulatory body and the agreement or agreement has not been approved or recommended by the regulatory body, the exchange facility should be provided only on the basis of the approval of the department for payment of an amount more than US$ 8,000 or other convertible foreign currency equivalent to it. Earlier, the limit was $ 15,000 and $ 8,000 respectively.
According to the amended provisions, now the Integrated E.P. Circular: 1÷In the case of import of services pursuant to clause (c) of Section 1.9.1 of the Circular, the bank guarantee of the foreign bank will be required if the foreign currency in excess of the amount of US $ 30,000 or equivalent convertible foreign currency is to be paid in advance in accordance with the other provisions of this circular. Earlier, the limit was up to $ 15,000.
Nepalese and foreign associations or institutions or companies who have been duly registered in Nepal and have obtained permission to carry out transactions in Nepal, can avail various services and facilities with the associations or institutions or companies based in India and pay up to Indian rupees 60 lakhs each time as per the agreement and agreement, in addition to the necessary documents from the commercial banks, the exchange facility can be provided only on the basis of the approval of the agreement and consent from the concerned regulatory body. In case the payment of more than Rs. 60 lakhs is not more than Rs. 60 lakhs and the agreement has not been approved or recommended by the regulatory body, the exchange facility shall be provided only on the basis of the approval of the Department. Earlier, the limit was up to 40 lakh Indian rupees.
Now, for the purpose of carrying items like aircraft engines or spare parts abroad, an advance payment of up to $ 5 lakh can be sent from banks and financial institutions under the prevailing system on the basis of the prescribed documents. Earlier, there was a limit of up to $ 1 lakh.
Similarly, now the foreign currency earned by the card user from exporting services online will also have to be deposited in the card. In this way, the foreign currency received will also have to be deposited in the card user’s domestic or foreign currency account at the request of the card user. If the card balance is more than US $ 10,000 or equivalent convertible foreign currency, then this excess amount will have to be deposited in his domestic or foreign currency account. Earlier, there was a limit of up to $ 5,000.
The annual limit of foreign currency exchange for payment made by card users who have earned foreign currency by exporting services to purchase goods and services from abroad shall be equal to the sum of the amount of foreign currency earned and US dollar dollars. However, such amount will be limited to a maximum of US dollars 10,000 per annum or other convertible foreign currency equivalent to it. Earlier, the limit was up to 5,000 dollars.
