“Banks and Financial Institutions need to receive advance before making remittance payment” says Rastra Bank

Nepal Rastra Bank has urged the financial institutions involved in the remittance business to receive the amount in advance before making a payment to the recipient in Nepal.

Nepal Rastra Bank has stated that for making the payment, the financial institutions should receive the amount in advance from the foreign remittance company.

Rastra Bank has issued this direction after the Malaysian remittance company, Max Money denied to pay to Himalayan Bank Limited. The remittance company has not paid such amount to other financial institutions as well.

In case the foreign remittance company is unable to pay in advance, foreign banks need to act as a guarantor for the case. Nepalese financial institutions can only make payment within the limit of the guarantee