Paid-up capital for remittance providers, money changers raised
August 23, 2016 01:30 AM NPT
KATHMANDU, Aug 23: Nepal Rastra Bank (NRB) has increased paid-up capital requirement for money changers and remittance companies.
The central bank has fixed the paid-up capital of foreign currency exchange firms to Rs 1.5 million. However, such firms, who also provide exchange service of Indian Currency, will have to maintain paid-up capital of Rs 2 million.
The NRB has instructed the money changers to raise their paid-up capital by mid-July 2017.
Earlier, the paid-up capital requirement for money changer providing foreign exchange service was Rs 1 million, while firms providing foreign exchange service for both Indian and other currencies were required to have a paid-up capital of Rs 1.5 million.
The central bank has, however, left the paid-up capital requirement for money changer providing exchange service for Indian currency only unchanged at Rs 500,000.
Similarly, the NRB has also increased paid-up capital requirement for remittance companies that issue remittance card to Rs 250 million.
Similarly, remittance companies that work as principal company for remittance service will have to maintain paid-up capital of Rs 100 million.
Likewise, remittance companies, who work as principal company of foreign remittance companies, will have to raise their paid-up capital to Rs 20 million, according to the circular issued by NRB on Sunday.
Unveiling the Monetary Policy for Fiscal Year 2016/17, the central bank had announced that it was raising the paid-up capital requirement of money changer and remittance providers.
Relaxation in retrouting
Meanwhile, NRB has offered relaxation to change routes for import of goods.
Earlier, traders were required to import goods from the custom points which they had mentioned in the Letter of Credit (LC) document. If the need to change route arises, they had to undergo a long process of getting approval from bank opening the LC, Department of Customs, and NRB, according to importers.
However, they can now change the route by producing a document regarding change in the route provided by the bank.
According to central bank officials, the new relaxation was provided following complaints from importers about difficulties that they have to face while changing import route.
The central bank had similar relaxation in a temporary manner earlier when India had imposed unofficial trade blockade in September. The new relaxation will be provided to traders who import goods from India.