Travelers to India told to use banking system for more than `50,000

Published On: July 10, 2017 08:28 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 9: Travelers to India except for treatment should use electronic cards or other banking instruments for exchange of currency above Indian Rs 50,000 from the next fiscal year.  

The new provision comes through the monetary policy for the next fiscal year unveiled by Nepal Rastra Bank (NRB) on Sunday.
NRB will enforce the provision through a separate directive after July 16. 

However, patients traveling to India for treatment can exchange currency as per their requirement. 

NRB has also announced that it would launch publicity campaign to control informal transactions. The central bank is also planning to effectively regulate currency exchange for foreign tourists, allowing them to use licensed institutions only. 

Likewise, permanent exchange facility will be provided to foreign employees of international airlines so that they can take home their salary in foreign currency. This facility will be given based on labor permit and valid employment contract, the policy says. 

NRB has also simplified repatriation of the dividends of the foreign investment. 
Foreign investors can take home dividends worth Rs 100 million through direct exchange facility using commercial banks. To use this facility, the investors need to submit specified documents to the bank. 

NRB has also introduced an exchange facility for infrastructure projects to bring in foreign loan for short term period. 

“A Nepali citizen, firm and institution can bring in loans up to US$ 500,000 from their relatives, other persons, Non-Resident Nepalis, and institutions. The loan should be for running a business or expanding it,” reads the policy. 

The current limit is $ 200,000. 

In case of India, the limit is Rs 50 million Indian. 
Registered hotels can also provide foreign exchange of up to $ 300 to a foreigner.
NRB has also announced that transactions via electronic cards of foreign service providers should be settled in Nepal and only net amounts will be paid after settling such transactions.

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