KATHMANDU, June 9: Nepal Rastra Bank (NRB) has extended the provision of a mandatory 100 percent cash margin on the import of betel nut, pea and peppercorns, effective from Thursday.
Amending a unified directive today, NRB has revised the rule of cash margin, making it applicable on these goods which were opened for import by the government three months ago. Narayan Prasad Pokhrel, deputy spokesperson for the NRB, told Republica that the central bank has slapped the cash margin provision on these three edibles.
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Earlier in October 2021, the government had partially banned the import of these high-value edibles, allowing them to be imported only on quota basis. However, the government on March 10 lifted the restriction on the imports of these goods.
“As the government has lifted the quota restriction, NRB has allowed importing these goods based on cash margin which the traders have to maintain while opening the letter of credit accounts,” Pokhrel said. According to him, around 50 goods now come within the bracket of up to cent percent cash margin provisions.
As of now, the central bank has been imposing the rule of cent percent cash margin on the import of sugar and confectionaries, clove, mineral water, alcoholic beverages, vinegar, energy drinks, cigarettes and tobacco products, perfumes, cosmetics, wooden items, footwear, cement, ceramic items, marble, umbrella, gold and silver. Likewise, the importers of automobiles need to maintain 50 percent of their cost in margin.
Since December 2021, the central bank has been making the importers of these goods deposit hard cash in advance before importing them. Citing the depleting foreign currency reserves with the country, NRB took the measures to discourage the import of these high-value edibles.
