Kathmandu. Nepal Rastra Bank (NRB) has become flexible in foreign currency transactions and payments. The Nepal Rastra Bank (NRB) has amended the Integrated Circular-2082 to make foreign currency transactions and payments a driver.

The Nepal Rastra Bank (NRB) has amended the Integrated Circular-2082 to increase the transaction limit. It has made some new provisions.

According to the NRB, at least 10 percent of the import value of the goods should have been sent before the goods are processed and the full payment has been sent before the customs clearance.

At least 10 percent of the import value of the goods should have been sent before the goods are processed and full payment should be sent before the customs clearance of the goods.

Similarly, the T.T. The monthly statement of partial payment before the shipment of the goods to be imported through TT has to be submitted to this department within 15 days of the end of the month.

While importing goods such as aircraft engines and spare parts, banks and financial institutions can send advance payment up to $ 5 lakh under the prevailing system on the basis of the documents including the recommendation of the concerned regulatory body (Civil Aviation Authority of Nepal). Earlier, such a limit was $ 100,000.

Banks and financial institutions will be able to provide exchange facility up to US$ 30,000 annually to Nepali citizens for the purpose of going to a hospital abroad for treatment and purchasing necessary medicines and medical equipment. Earlier, such facility was $ 15,000.

Banks and financial institutions will be able to pay up to $5 lakh annually for the lease of satellite services by entering into an agreement with foreign service providers. Earlier, it was $100,000.

Exchange facility up to US$ 30,000 or other convertible foreign currency equivalent to US$ 30,000 per time may be provided by commercial banks on the basis of agreement approved or exchange recommendation by the regulatory body. For payment of US$ 30,000 or other convertible foreign currency equal to US$ 30,000 per time, the regulatory body

The exchange facility will have to be provided only on the basis of the approval of this department along with the recommendation. Earlier, the facility was $ 15,000.

In addition, in the absence of a regulatory body and the agreement/agreement has not been approved or recommended by the regulatory body, the exchange facility shall be provided only on the basis of the approval of this Department for payment in excess of US $ 8,000 or other convertible foreign currency each time.

In the case of import of such services, a bank guarantee of the foreign bank will be required if the foreign currency is to be paid in advance in excess of US $ 30,000 or equivalent convertible foreign currency per time in compliance with the other provisions mentioned in this circular. Earlier, this facility was Rs 15,000.

Nepalese and foreign associations/institutions/companies etc. may be provided exchange facility up to INR 6 million per time as per the agreement or agreement with the associations/institutions/companies based in India for the amount to be paid from the commercial banks in addition to the documents mentioned in Section 2 above.

If the payment is not more than Rs 60 lakh per time and the regulatory body does not have to approve or recommend the agreement, the exchange facility will have to be provided only on the basis of the approval of the department. Earlier, it was Rs 40 lakh.

Advance payment up to US$ 500,000 from banks and financial institutions on the basis of documents required to repair aircraft engines and spare parts abroad

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It can be sent. Earlier, it was Rs 1 lakh.

The concerned commercial bank receiving the export amount will be able to pay USD 30,000 in case of third country and Indian rupees in case of India. It can provide payment facility for imports within the limit of Rs 60 lakh. Earlier, it was $12,000 and Rs 30 lakh.

In the name of a licensed travel/tour agent, payment may be sent only in the name of a foreign tourist from abroad or from a foreign tourist in Nepal not exceeding the foreign currency received for that purpose.

If a licensed travel/tour agent purchases such service from another licensed travel/tour agent and provides it to the customer, the licensed travel/tour agent selling the service may send foreign currency payment to meet the following conditions:

The foreign currency invoice should be issued to the licensed travel/tour agent purchasing the service, the foreign currency should be received in the bank account of the licensed travel/tour agent purchasing the service and the payment should not exceed the foreign currency received for the purpose from the licensed travel/tour agent purchasing the service.

Nepalese firms and companies related to information technology industry, commercial agriculture, manufacturing industries, infrastructure development, tourism industry and energy industry for the purpose of bringing foreign loans to Nepal

from foreign institutions.

For this, licensed “A” class banks may issue bank guarantee or Standby Letter of Credit of foreign currency.

Similarly, in case of investment in highly liquid foreign government bonds of a country with rating A minus A3 or above from the international credit rating agency, the investment can be done by adding 10 percent to the total investment limit of 40 percent for a maximum period of 50 years and a maximum period of 5 years.

The hedging service to be provided for the management of foreign exchange risk by the foreign currency loan facility to be availed by the information technology industry, commercial agriculture, manufacturing industry, infrastructure construction, tourism industry and energy industry or the credit facility available from the seller for the import of capital goods for the management of foreign exchange risk is not more than 5 years

They will be able to invest in such financial instruments of the period. This is a new arrangement.