KATHMANDU, March 8: Nepal Rastra Bank (NRB) has asked all Payment Service Operator (PSO) companies to go public by the end of Fiscal Year (FY) 2027/28.
Issuing a unified directive on Friday, the central bank has directed all PSOs to convert into public limited companies within the next three years. As of now, Nepali PSOs have been operating as private entities.
The central bank’s new directive will apply to all entities engaged in the operation, management, and settlement of payment activities. The PSOs currently operating in the country include FonePay, Connect IPS, Smart Choice Technology, Nepal Clearing House Limited, and Nepal Payment Solution, among others.
These companies provide ATM card services and mobile banking-based payment services. Nepal Clearing House has investments from Nepal Rastra Bank and various banks and financial institutions. Several of these PSOs also facilitate cross-border payments and transaction settlements.
Through the unified directive, the NRB has also tightened regulations on PSOs issuing multiple types of cards to a single customer. Under the new rule, PSOs are barred from issuing debit cards, credit cards, and prepaid cards from a single account of an individual customer.
Aiming to effectively implement anti-money laundering measures, the central bank has asked PSOs to report the details of their related activities to the Money Laundering Prevention Supervision Division of NRB within two months of the end of the FY.
Likewise, PSOs will have to track whether their customers use Virtual Private Networks (VPNs) while using mobile banking or internet banking services. Citing increasing digital threats, the central bank has directed PSOs not to allow their clients to access digital banking services unless they use authenticated VPNs. Licensed PSOs must also conduct regular Disaster Recovery (DR) drills for payment systems and route all transaction settlements through authorized settlement accounts in designated banks.
The NRB has maintained the threshold for maximum transaction amounts unchanged. The daily limit for transactions between bank accounts (including QR) and wallets remains Rs 200,000, while the monthly limit is Rs 1 million. Similarly, the limit on transactions between two wallet platforms is Rs 50,000 daily, while the monthly threshold is Rs 500,000.