Nepal Rastra Bank raises limits on foreign exchange and advance payments

Nepal Rastra Bank has raised limits related to foreign currency conversion and payments. The central bank issued the circular on Monday, amending the consolidated directive on foreign exchange management.

According to the circular, Nepali airlines can send advance payments of up to US$500,000 through banks for importing aircraft engines and spare parts, based on the recommendation of a regulatory body. The previous limit was US$100,000. A foreign bank guarantee is no longer required for this. Advance payments of up to US$500,000 can also be made when aircraft engines and spare parts are sent abroad for repair.

The annual exchange facility for Nepali citizens receiving treatment abroad has been raised from US$15,000 to US$30,000.

Telecom companies may pay up to US$500,000 per year to lease foreign satellite services.

The limit on the foreign currency facility for transactions with India has also been raised.

The balance that people exporting services online may keep on a dollar card has been doubled from US$5,000 to US$10,000. Amounts above the limit must mandatorily be deposited in a bank account. Such users may spend up to US$10,000 per year to buy goods and services from abroad.

For imports through the Tatopani, Rasuwagadhi and Mustang customs points, it will now be enough to make full payment before the goods are cleared. However, at least 10 percent of the amount must be sent before shipping.