NRB Raises Foreign Payment Limits to Facilitate International Transactions

Nepal Rastra Bank (NRB) has amended its foreign exchange-related provisions and increased several payment limits to facilitate the import of goods and services, overseas service payments, and banking transactions. Under the revised arrangement, Nepali citizens can now exchange up to USD 30,000 annually for medical treatment abroad, up from USD 15,000. Likewise, telecommunications companies can make payments of up to USD 500,000 annually for satellite services, while the foreign exchange limit based on regulatory approval has been raised to USD 30,000 per transaction from USD 15,000. For advance payments exceeding USD 30,000, a foreign bank guarantee will be required. The central bank has also raised the limit for payments by companies in Nepal for services received from India to INR 6 million per transaction, compared with the previous INR 4 million. In addition, foreign exchange card users can now maintain balances of up to USD 10,000, with any excess required to be deposited into a bank account. Nepali airline companies have also been allowed to make advance payments of up to USD 500,000 for aircraft engines and parts based on a recommendation from the Civil Aviation Authority of Nepal, without requiring a foreign bank guarantee.