Nepal Rastra Bank (NRB) has introduced new regulations that necessitate casinos and similar establishments to secure official consent prior to engaging in foreign currency dealings. As per an announcement from the central bank, this initiative is in line with Section 3 of the Foreign Exchange (Regulation) Act, 2019, which requires prior authorization for the execution of foreign exchange operations.
The central bank indicated that the recent measure has been established to enhance the oversight and regulation of foreign currency transactions within the nation. Noting that several guidelines associated with foreign exchange have previously been implemented, NRB emphasized that casinos and other establishments partaking in such dealings must now formally acquire permission before conducting or enabling foreign currency exchanges, which includes transactions involving Indian rupees.
According to NRB, this initiative is intended to foster transparency and adherence within sectors like casinos that often manage foreign cash. By instituting a compulsory licensing procedure, the central bank hopes to mitigate the possible misuse of foreign currency and ensure improved supervision over the financial flow in the entertainment and tourism sectors.
In addition to the foreign exchange regulation, NRB has also released a comprehensive guideline pertaining to the nation’s payment systems. The new regulation stipulates specific limits on transactions made through prepaid, debit, and credit cards, with the aim to encourage prudent usage and diminish financial risks tied to electronic payments.
Under the updated framework, debit card transactions will now have a cap of Rs. 20,000 per transaction, with a maximum allowance of Rs. 50,000 each day. This represents a decrease from the former daily limit of Rs. 100,000. For prepaid cards, the transaction limit is fixed at Rs. 10,000 per transaction and Rs. 20,000 daily, with a monthly ceiling of Rs. 200,000. The central bank reiterated that the rules regarding prepaid cards remain unchanged. As for credit cards, the existing regulation permitting transactions up to 10 percent of the approved limit continues to be in effect.
