NRB eases foreign exchange rules for Nepali students

Nepal Rastra Bank (NRB) has relaxed foreign exchange rules for students pursuing higher education abroad, allowing banks and financial institutions to provide up to 5% more foreign currency than the amount officially required for educational expenses.

According to the arrangement under the provisions of Integrated Foreign Exchange Directive, banks may provide the required foreign exchange based on documents confirming that the concerned country's embassy or government authority requires a specified amount to be maintained in the student's bank account. This provision also applies when the required amount must be shown in the local currency of the destination country, even if that currency is not included in the bank's list of convertible foreign currencies.

To address uncertainties arising from fluctuations in exchange rates, banks may remit up to 5% more than the required amount in US dollars or other convertible foreign currencies when the exact additional cost resulting from exchange rate movements cannot be determined in advance.

According to NRB, the additional allowance will help address discrepancies that may arise from currency exchange fluctuations. The facility applies when universities, embassies, or government agencies in destination countries require proof of sufficient funds for admission or visa processing.

Additionally, NRB  has said that documents authenticated through electronic signatures in accordance with the Electronic Transactions Act, 2006, will also be accepted as valid for processing such requests.

Currently, families of Nepali students are allowed to remit annual living expenses ranging from $2,500 to $5,000. They can also remit tuition fees and other academic expenses upon submission of verified documents from their educational institutions.