KATHMANDU, May 28: The Nepal-India Chamber of Commerce & Industry (NICCI) has raised a number of concerns with the Nepal Rastra Bank (NRB), including issues related to the repatriation of dividends and foreign employee salaries, delays in cross-border service payments, and inefficiencies in the Single Window Service system.
A NICCI delegation, led by its President Sunil KC, met with newly appointed NRB Governor Dr. Bishwonath Poudel on Wednesday to discuss challenges faced by Indian multinational and joint venture companies operating in Nepal.
Congratulating Dr. Poudel on his appointment as the 18th governor of the central bank, KC highlighted the significant contributions of Indian joint ventures to Nepal’s economic growth and employment. He urged the central bank to adopt more facilitative policies to support foreign investors.
Revised interest rate corridor system introduced
During the meeting, Saibal Ghosh of Berger Paints emphasized the need to simplify the repatriation process for dividends. “Companies must obtain NRB approval, submit audited financials and tax clearance certificates, and ensure compliance with FDI norms. Additionally, foreign employees must individually apply for salary repatriation, a process burdened by excessive documentation and limited to just 70% of their earnings — a cap that should be reviewed,” he said.
Sumitra KC from Dabur Nepal’s legal department pointed out inefficiencies in the Single Window Service Centre. “Though designed to streamline payment approvals for services acquired from abroad, the Centre has yet to meet its intended purpose. Duplicate processes at the Department of Industry and NRB continue to delay approvals,” she noted, calling for a review and simplification of the system.
Vidushi Rana, Executive Director of GoldStar Shoes, requested support from NRB in facilitating timely disbursement of export incentives, which she said would enhance the global competitiveness of Nepali products.
Navneet Gupta, CEO of National Insurance, urged the central bank to raise the cash limit for Indian tourists visiting Nepal. Meanwhile, Sameer Shrestha, CFO of Asian Paints, called for a more liberal approach to outward remittances. “Payments for technical services, consultancy, software, and digital services — especially above INR 1 lakh for Indian companies or US\$5,000 for third-country entities — require prior NRB approval. These thresholds should be revisited to reflect current market practices,” he said.
Sanima GIC Chairman Kunal Kayal also requested revisions to the Working Capital Guidelines to make them more practical and aligned with current business needs.
In response, Governor Poudel assured the NICCI team that the central bank is committed to resolving genuine concerns. He stated that instructions have already been issued to ensure repatriation approvals are completed within 14 days of application submission. “Other valid issues under NRB’s jurisdiction will also be addressed positively,” he added.
