NRB eases foreign exchange rules, raises key dollar limits

Nepal Rastra Bank (NRB) has eased several foreign exchange rules, raising limits for overseas medical treatment, satellite services, aircraft repairs, imports and other international payments.

The annual foreign exchange facility for Nepalis seeking medical treatment abroad has been doubled to $30,000 from $15,000. The amount can also be used to purchase medicines and medical equipment, subject to required documentation.

The payment limit for Nepali telecommunications companies using foreign satellite services has been increased to $500,000 a year from $100,000.

Commercial banks can now provide up to $30,000 in a single foreign currency transaction, up from $15,000, when the relevant regulatory authority has approved or recommended the transaction. Payments above $30,000 require NRB approval.

For imported services, advance payments exceeding $30,000 will require a bank guarantee from a foreign bank.

The central bank has also allowed banks and financial institutions to make advance payments of up to $500,000 for repairing aircraft engines and spare parts abroad.

The limit for imports financed through export earnings has been raised to $30,000 for third-country imports and INR 6 million for imports from India, up from $12,000 and INR 3 million respectively.

Nepali companies borrowing from abroad in sectors including IT, agriculture, manufacturing, infrastructure, tourism and energy can also receive foreign currency guarantees from Class A commercial banks, subject to the loan amount and tenure.

Foreign currency earned through online service exports can now be credited to payment cards. However, card balances above $10,000 must be transferred to a bank account.

Service exporters can spend abroad an amount equivalent to their foreign currency earnings plus an additional $500, subject to an annual ceiling of $10,000.

The revised provisions are aimed at making legitimate international payments easier while maintaining documentation, regulatory approval and formal banking safeguards for larger transactions.