A good new for all Nepalese, we can now make international payments!
In point 66 of the review document of the first quarter of the fiscal year 2077/78, NRB has now unveiled a descriptive document which states that Nepalese can now easily make international payments. This means we can now pay for Netflix, Amazon, Online Ads and many more on our own.
Till date, Nepalese were able to purchase foreign goods and services for domestic consumption totaling not more than $2,000 a year via their credit/ debit vards. Nepalese consumers did not have any other means of international payment.
Due to absence of a convenient means of international payment, we were compelled to use the PayPal and Payoneer cards of our relatives residing abroad. This unavailability of convenient payment system has also elevated use of illegal payments means like Digital Hundi. Apart from giving a distorted view of the country’s economy, such activities also decreases the major source of government revenue- the taxes. Further, Nepal is a growing economy taking small yet visible steps towards digitization. So, not having an international payment gateway not only limits our presence in the digital world economy but also hampers our digital entrepreneurs.
Taking the issues as well as the need of modern digital economy into account, Nepal Rastra Bank has approved the concept of a prepaid Dollar Card. With this, banks can now issue Prepaid Cards for international payment for goods and services.
These are some of the things to consider when you are making an international payment:
- Nepalese cardholders are allowed to deposit a maximum of $500 for the international payment.
- The existing fund in the Nepalese rupee in the respective bank account can be converted to foreign currency for that purpose.
- Payment can be done only for the purchase of goods and services allowed by Nepalese laws.
- Only one card can be made for international payment from only one bank by an individual or entity. Usage of multiple cards from multiple sources is a punishable act.
- KYC and PAN are needed to apply for the Prepaid card.
- 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.
What are your thoughts on this step by the government? This is no doubt that it is a positive step but again time will only tell how well NRB handles and modifies this as per the need!
You can find all the necessary details on the NRB’s Official Document here!