Nepal Rastra Bank (NRB) has announced new provisions requiring casinos and similar types of institutions to obtain official permission before engaging in foreign currency transactions. According to a notice issued by the central bank, this move aligns with Section 3 of the Foreign Exchange (Regulation) Act, 2019, which mandates prior approval for conducting foreign exchange activities.
The central bank stated that the new arrangement has been made to strengthen the regulation and monitoring of foreign currency operations within the country. Recalling that various rules and regulations related to foreign exchange have already been issued, NRB mentioned that casinos and other institutions involved in such transactions must now formally seek authorization before conducting or facilitating foreign currency exchanges, including those involving Indian rupees.
According to NRB, this step aims to ensure transparency and compliance within sectors such as casinos that frequently handle foreign cash. By making the licensing process mandatory, the central bank expects to curb potential misuse of foreign currency and to maintain better oversight of money flow within the entertainment and tourism industries.
In addition to the foreign exchange directive, NRB has also issued an integrated guideline concerning the country’s payment systems. The new directive sets specific transaction limits for prepaid, debit, and credit cards, aiming to promote responsible usage and reduce financial risks associated with electronic transactions.
Under the revised system, debit card transactions will now be limited to Rs. 20,000 per transaction, and users will be allowed a maximum of Rs. 50,000 per day. This marks a reduction from the previous daily limit of Rs. 100,000. For prepaid cards, the limit has been set at Rs. 10,000 per transaction and Rs. 20,000 per day, with a monthly ceiling of Rs. 200,000. The central bank clarified that there has been no change in the provisions regarding prepaid cards. As for credit cards, the existing rule allowing transactions up to 10 percent of the approved limit remains unchanged.
