NRB relaxes foreign exchange facility rules

KATHMANDU:

Banks and financial institutions (BFIs) from now on will not have to seek Nepal Rastra Bank (NRB)’s permission to extend foreign exchange facility of up to $10,000 per year to those going abroad for medical treatment or purchasing medicines from countries other than India.

Also, BFIs, from now onwards, need not wait for NRB’s nod to pay rental fee of up to $100,000 per year on behalf of telecom companies that have acquired satellite service from abroad. Advance payment of same amount can also be made by BFIs on behalf of Nepali airline companies that are repairing engines or airplane parts in foreign countries.

NRB has extended these facilities as per the commitment expressed through this fiscal year’s Monetary Policy.

“As per the Monetary Policy, we have now allowed BFIs to provide convertible currency equivalent to $10,000 per year to those visiting foreign countries, other than India, for medical treatment. We have also allowed BFIs to extend the same amount of foreign exchange facility for purchasing medicines from aboard,” a high-ranking NRB official said.

To avail this service, those applying for foreign exchange facility should furnish a recommendation letter from a local doctor stating that the patient needs to go abroad for medical treatment, says a circular issued today by NRB. Also, documents on estimated expenses abroad provided by foreign hospitals should be submitted. The patients will have to submit details of expenses made abroad to concerned BFIs upon return to the country.

Likewise, telecom companies acquiring satellite service from abroad should submit a copy of the agreement with the foreign service provider, recommendation letter from the Ministry of Information and Communications, copy of invoice provided by the foreign service provider and tax receipt to avail foreign exchange facility of $100,000 per year.

On the other hand, Nepali airline companies that need to make advance payments of up to $100,000 to foreign firms repairing its engines or parts need to submit a recommendation letter provided by the Civil Aviation Authority of Nepal, customs clearance document on export of airplane parts, and tax receipt at BFIs.

Among others, NRB has also allowed BFIs to extend foreign exchange facility of up to $35,000, to be paid through draft or telegraphic transfer, to importers who bring in goods from countries other than India, up from $30,000 in the past.

Source: THT