NRB Mandates Licensing for Casinos and Institutions Conducting Foreign Currency Transactions

Nepal Rastra Bank (NRB) has instructed casinos and similar institutions to obtain formal authorization before conducting any foreign currency transactions, including those involving Indian currency. In a notice issued by the Foreign Exchange Management Department on Friday, the central bank reminded that, as per the Foreign Exchange (Regulation) Act, 2019 (B.S.), institutions must secure a license from NRB to deal in foreign exchange.

According to the Foreign Exchange Transaction License and Inspection Regulation, 2077 (Second Amendment), casinos are required to obtain such licenses from NRB to carry out currency-related transactions. Each casino must submit a bank guarantee of Rs. 25 lakhs per transaction location for two years and pay Rs. 100,000 as a license fee. For renewal, an additional Rs. 25 lakhs guarantee is required.

Casinos operating games solely through equipment are subject to a separate provision—requiring a bank guarantee of Rs. 10 lakhs per location and a license fee of Rs. 50,000. The license must be renewed before the two-year period expires. NRB has urged all concerned institutions to follow these regulations and ensure compliance before engaging in any form of foreign exchange activity.