Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has issued the Integrated Directive on Payment Systems 2082 in a bid to make the payment system more systematic, secure and inclusive. The new directive removes 17 different directives and all circulars of 2081 B.S. in a single document.
This move of the Nepal Rastra Bank is expected to have a long-term impact in the field of digital payments and financial technology in Nepal.TAG_OPEN_p_15
TAG_OPEN_p_14 Remittances from abroad can now be deposited directly into mobile wallets. The normal load limit will not apply, but the overnight stock limit is set at Rs 50,000. In addition, interoperability between all payment providers is legally mandatory. This will help in providing financial access to remote areas.
The new directive places high priority on technology and security. Banks and financial institutions will now be able to issue only cards with ‘chips’. This will help in controlling card fraud. ISO 27001 cybersecurity certification is mandated for payment service providers. In addition, the use of artificial intelligence to detect suspicious transactions and fraud has been permitted.
A new rule has been implemented regarding overnight stocks on e-wallets. According to the directive, the payment system operators must compulsorily convert into a public limited company by Ashad end, 2085. It is also expected to improve corporate governance of institutions and pave the way for future issuance of shares to the public.
TAG_OPEN_p_10 The Nepal Rastra Bank (NRB) has banned the signing of ‘exclusivity’ agreements for agents. This means that no agent will be compelled to work as a single service provider. This will break the monopoly of the market and increase healthy competition among service providers. However, due to the high compliance cost, it is expected that smaller entities may go into mergers and the market may remain dominated only by the stronger players.
