NRB relaxes foreign currency exchange facility
KATHMANDU:
Nepalis now do not need to carry passports to exchange foreign currency with the central bank’s new provision allowing them to avail the facility by showing valid identification.
A self attested copy of identification card like citizenship card or any such cards issued by the government or the employers will be sufficient to get Nepali currency in the exchange of foreign currency equivalent up to $1000 from commercial banks and development banks, according to Nepal Rastra Bank (NRB)’s latest circular.
The banks are not allowed to charge any extra fee for availing the service above the prevailing exchange rate, it said, adding that the provision is supposed to help in bringing in more foreign currencies in the banking system as the earlier procedure requiring passport and the proof of the income had discouraged people from seeking formal channels to exchange foreign currency. Moreover, the foreign currencies earned as tips or gifts were being exchanged at money changers that charged higher fees.
The new exchange facility does not allow the banks to deposit the money exchanged in the service seeker’s foreign currency account and that foreign currency will also not be eligible for opening foreign currency account.
The class ‘A’ and ‘B’ financial institutions — commercial banks and development banks have to supply Foreign Exchange Encashment Receipt as a proof of exchange.
The central bank does not take the responsibility of reimbursing the banks in case the exchanged foreign currency turns out to be counterfeit, the circular added.
Source: THT
Nepalis now do not need to carry passports to exchange foreign currency with the central bank’s new provision allowing them to avail the facility by showing valid identification.
A self attested copy of identification card like citizenship card or any such cards issued by the government or the employers will be sufficient to get Nepali currency in the exchange of foreign currency equivalent up to $1000 from commercial banks and development banks, according to Nepal Rastra Bank (NRB)’s latest circular.
The banks are not allowed to charge any extra fee for availing the service above the prevailing exchange rate, it said, adding that the provision is supposed to help in bringing in more foreign currencies in the banking system as the earlier procedure requiring passport and the proof of the income had discouraged people from seeking formal channels to exchange foreign currency. Moreover, the foreign currencies earned as tips or gifts were being exchanged at money changers that charged higher fees.
The new exchange facility does not allow the banks to deposit the money exchanged in the service seeker’s foreign currency account and that foreign currency will also not be eligible for opening foreign currency account.
The class ‘A’ and ‘B’ financial institutions — commercial banks and development banks have to supply Foreign Exchange Encashment Receipt as a proof of exchange.
The central bank does not take the responsibility of reimbursing the banks in case the exchanged foreign currency turns out to be counterfeit, the circular added.
Source: THT
