Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Rastra Bank (NRB) has issued a new directive mandating that Nepali migrant workers bring the money they earned abroad back to Nepal within 35 days of returning home. The central bank’s notification specifies that funds held in foreign banks should be repatriated within this timeframe to comply with existing regulations.
This directive is rooted in the provisions of the *Foreign Exchange (Regulation) Act, 2019 and the Act Restricting Investment Abroad, 2021, which prohibit Nepali citizens from opening bank accounts abroad, investing in real estate, or making any other types of investments outside Nepal. However, there is an exception for Nepali citizens who are working abroad, allowing them to open and maintain accounts in foreign banks during their stay overseas.
According to the NRB, those who wish to retain their foreign bank accounts or investments even after returning to Nepal must declare their details within 35 days. This includes providing the NRB with their name, address, account number, foreign currency type, and the amount held in these accounts.
The central bank’s directive is aimed at regulating foreign exchange and ensuring that money earned by Nepali workers abroad is repatriated to support the national economy. This measure also seeks to curb unauthorized foreign investments and ensure that the earnings of Nepali citizens contribute to the domestic financial system.
Nepal Rastra Bank has emphasized the importance of compliance with this regulation and warned that failure to adhere to the requirements could lead to legal consequences under the applicable laws. The bank has urged all returning migrant workers to ensure that their foreign-earned money is brought back to Nepal in a timely manner to avoid potential penalties.
The new mandate is expected to have a significant impact on the financial habits of Nepali citizens who have worked abroad, as it requires them to bring their foreign earnings home and integrate them into the national economy.
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