Limit on dollar denominated credit cards up

KATHMANDU:

Anyone with a dollar account at commercial banks can get issued dollar denominated credit cards with $10,000 expenditure limit.

Issuing a circular, Nepal Rastra Bank (NRB) has doubled the limit to $10,000 that used to be $5000 earlier, in line with the monetary policy 2013-14.

The monetary policy had announced that a provision will be made to exchange a maximum of $10,000 or equivalent convertible foreign currency per year from one’s own foreign currency account.

“NRB had been receiving complaints from dollar account holders that they were not able to spend much despite having the balance, thus, the central bank has hiked the limit,” informed an official at NRB’s Foreign Exchange Management Department.

The monetary policy has also said that a provision will be made to allow Nepali citizens working in international organisations who have foreign currency accounts to use a certain prescribed amount from their accounts. Dollar accounts can be opened in a commercial bank by domestic and foreign individuals, firms and institutions including Nepali citizens who are earning in foreign currency.

However, for those without dollar accounts there are no changes in foreign exchange limit which remains at $2500 per foreign trip. The dollar pre-paid cards issued by banks will allow the applicant to spend up to $2500 per trip and a maximum of $6000 per year.

Only those with incomes from foreign countries are issued dollar denominated credit or debit cards by commercial banks. However, those living in Nepal and earning only in Nepali rupee can get dollar denominated pre-paid cards to make payments abroad.

NRB has asked banks to issue pre-paid or debit cards for Nepali travellers and stamp the amount of money in the prepaid or debit card and the cash provided, in the passport based on travel documents.

The move to encourage plastic payment cards rose after travellers’ cheque (TC) issuer American Express stopped issuing dollar denominated TCs for Nepal. imit on dollar denominated credit cards up

Source: THT