Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has announced a significant revision in foreign exchange regulations, simplifying the process for foreign companies without regulatory oversight in Nepal to repatriate dividends based on self-declaration.
In a recent statement, NRB clarified that companies or branches with regulatory oversight in Nepal will still require approval from their respective regulatory bodies for profit repatriation. However, entities operating without such oversight can now secure approval based on their application and self-declaration. Before repatriating dividends, these transactions must be disclosed and approved by NRB.
Foreign companies operating in Nepal, including banks, financial institutions, insurance companies, and entities from various sectors, typically regulated by bodies like the Department of Industry, can benefit from this simplified process. NRB’s recent revision aims to facilitate profit repatriation particularly for consulting firms and small to medium enterprises that lack regulatory oversight.
Moreover, NRB’s updated guidelines now permit Indians residing in Nepal to remit their earnings online to their Indian bank accounts. Under these guidelines, individuals can transfer up to Rs 15,000 per day or Rs 100,000 per month via the Retail Payment Switch (RPS).
The central bank’s move is expected to enhance ease of business operations for foreign entities in Nepal and support smoother financial transactions for Indian residents in the country.
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