KATHMANDU, Dec 5: Nepal Rastra Bank (NRB) has asked payment service providers (PSPs) to carry out transactions only through authorized representatives, by ruling out the role of agents at present.
Amending the unified directive related to payment systems, the NRB has come up with new rules for the digital service payment platforms by tightening the noose against the companies concerned. The central bank has asked the PSPs to annul all the existing agents and sub-agents appointed by these companies in the next three months.
According to the new provision, the PSPs should take approval from their board while appointing the authorized representatives. Likewise, the central bank has announced to directly inspect the work of the representatives and their facilities.
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According to the NRB, from now onwards, only the authorized representatives can carry out financial transactions on behalf of the PSPs’ customers. “By using wallet service, the representatives can receive a maximum of Rs 5,000 per day, not crossing the limit of Rs 25,000 per month,” reads the revised directive issued by the NRB.
The PSPs are however permitted to fix the daily transaction limit for the authorized representatives. The PSPs will be liable to maintain records of all transactions carried out by these representatives.
The companies concerned will have to prepare a quarterly report of the digital transaction while they will have to submit the report to the Payment Systems Department of the NRB on a half-yearly basis. While appointing the authorized representatives, PSPs should give priority to individuals from locations having low financial accessibility.
The NRB has barred the authorized representatives from appointing the sub-agents to accomplish the tasks. Although the transaction will be made through the authorized representatives, the PSPs will have to assume full responsibility on any mismatch surfaced during the transactions.
According to the NRB, the new provisions will streamline the financial transactions carried out via payment service platforms like wallet and prepaid cards. “The provision of authorized representatives could also regulate utility bills payment services being offered by the PSPs.”
