KATHMANDU, Aug 8: Nepal Rastra Bank (NRB) has relaxed foreign currency payment regulations for service importers, citing adequate reserves in the state treasury. The central bank has increased the threshold for payments related to service imports under the revised Unified Circular 2024 on foreign exchange, issued on Thursday.
Under the new provision, organisations importing services from countries other than India can now receive up to US $8,000 without requiring prior approval from the central bank. Previously, the limit was set at $5,000. “However, regulatory consent is mandatory for payments exceeding USD 8,000,” the NRB said in a public statement.
For advance payments exceeding USD 15,000—or its equivalent in other convertible foreign currencies—a bank guarantee from a foreign bank is now required. This is an upward revision from the earlier threshold of USD 12,000.
Revised interest rate corridor system introduced
Similarly, institutions conducting foreign language and proficiency tests will be allowed to remit up to USD 15,000 per transaction without NRB approval. This provision applies to tests such as TOEFL, IELTS, PTE, GRE, GMAT, and SAT, among others.
In another significant move, insurance companies no longer need NRB approval to pay India-based actuaries, surveyors, and valuators in foreign currencies. “Based on the recommendation of the relevant regulator, insurers can directly obtain the required foreign exchange from commercial banks,” the NRB directive stated.
According to Revati Prasad Nepal, Head of the Foreign Exchange Regulation Management Department at NRB, the new provisions aim to streamline and facilitate the import of services.
NRB prohibits LC for vehicles failing to meet EURO VI standards
KATHMANDU, Aug 7: Nepal Rastra Bank has prohibited banks and financial institutions from opening letters of credit (LC) for the import of four-wheelers that do not comply with EURO VI emission standards.
The move follows the government's recent enforcement of the ‘Nepal Vehicle Emission Standards 2025’, which mandates EURO V compliance for two- and three-wheelers, and EURO VI for four-wheelers.
In a circular issued on Thursday, the NRB stated that reconditioned cars and other vehicles, including cargo automobiles that fail to meet the new emission criteria, will not be allowed for import.
