Banks Allowed To Issue Prepaid Cards In Foreign Currency

December 29, 2020 | Investopaper

Commercial banks will be able to issue prepaid foreign currency cards for the purpose of paying for import of services from abroad online. Nepal Rastra Bank is going to provide the facility of foreign exchange for importing foreign services online. The Department of Foreign Exchange under NRB has prepared a proposal for facilitating the foreign exchange while importing foreign services through online. It has also called for opinions and suggestions.

Through the first quarterly review of the monetary policy for the current fiscal year, the central bank had announced to make provision to import foreign goods and services through online and provide exchange facility in foreign currency to pay for it. According to the NRB, commercial banks will be able to issue prepaid cards in convertible foreign currency of USD 500 or equivalent for the purpose of paying for import of services from abroad online.

NRB is going to make provision to issue such card by exchanging Nepali rupee in the bank account of the person, firm, company or organization who wants to get prepaid card of foreign currency. NRB has stated that the user’s KYC should be updated and PAN number should be obtained while issuing the card.

Commercial banks can issue cards up to a maximum of USD 500 at the request of the customer, depending on the exchange rate on the day of issue. There is a provision to deduct tax in advance when purchasing services from abroad while issuing such card. Users will be able to receive a maximum of US $ 500 worth of foreign currency. They can purchase online services in Nepal that are not prohibited by Nepal’s law.

NRB has requested all the concerned persons and bodies to give necessary opinions, suggestions, support and feedback on the proposed arrangement by mid-January.


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