The international payment system has been a major issue for a Digital entrepreneur in Nepal. Since Nepal is also growing rapidly in the digital world, the International payment system is a must. Despite the issue, some of the digital entrepreneurs have been using payment systems like PayPal, Payoneer through their relatives living abroad, which is not favorable to the country itself.
Recently, there has been an ongoing rumor that NRB will allow the Nepalese to make international payments, which turned out to be true. The NRB has added a provision of the international payment system in the first quarter review of monetary policy (2020-2021).
The international payment system in Nepal
The option of making payments in foreign currencies was not available until now. In absence of convenient means of the international payment system, the Nepalese Digital entrepreneurs have been facing quite a problem in their Digital marketing ventures. To this issue, many of them were using the foreign payment gateways of their relatives residing abroad. Due to this, Digital Hundi has risen to its peak.
The Nepalese transaction seems untrackable by the government, which directly/indirectly has hampered the country’s economy. Not only that, such activities promote hiding tax/revenue from the government, which has made the people rich through the country’s economy is poor.
Acknowledging all these problems and also to promote transparent international Digital transaction, NRB has finally introduced the concept of a prepaid Dollar card, to allow foreign payments in Nepal with certain restrictions on it. But there are some rules that users need to keep in mind.
Criteria and process to get International Payment Card from Nepal
- To issue a prepaid card for Nepalese users, the users have to first fill up and submit their KYC and PAN details.
- Cardholders are allowed to deposit a maximum of $500 for the International payment.
- The existing fund in the Nepalese rupee can be converted into foreign currency based on the exchange rate.
- Users are strictly prohibited from buying foreign goods/services that are not acknowledged by the government.
- Only one card can be issued by an individual or organization.
- If the users have proof that he/she has earned at least twice the deposited amount, then the user is eligible for an additional amount on their Prepaid Card.
- If the users are found to have multiple cards from the multiple banks, he/she will be subjected to the action based on the existing Foreign Currency Act.
- This system lies on top of the Money Laundering Prevention Act, 2064. So, the user will have to follow all the regulations directed by the act.
Benefits of International Payment system in Nepal
In the last few years, the use of digital platforms in Nepal has hugely risen up like the height of Mount Everest. Along with the platform, the use of digital means of payments is also increasing rapidly.
Slowly, Nepal is moving towards a cashless economy. Further with the implementation of the international payment system, the development of the payment system infrastructure will also boom in the near future. This will surely revive the economic condition of the country.
Likewise, with this implementation, foreign trading will also be boosted with the import of goods/services. Having to manage direct remittance will also allow the government to track all the transactions, which will enhance sustainable economic development while stimulating the growth of economic and current exchange activities.
Freelancer, Digital entrepreneurs are also directly benefited as they don’t have to rely on the illegal medium for international transactions. Furthermore, this will be a great opportunity for the people that we’re unable to do international work.
This time NRB’s decision regarding the international payment system in the country is obviously a positive step in the development of economic status. Nepal can be benefited in many ways once the payment system is integrated into every digital platform. Even though the policy hasn’t been operated yet, we hope that it will be implemented as soon as possible.