KATHMANDU: The Nepal Rastra Bank (NRB) has revised its foreign exchange regulations, increasing the limits for foreign currency payments and exchange services for businesses and individuals. The central bank’s foreign exchange management department announced the changes through an amendment to the unified circular for 2082, affecting imports, service payments, and various other transactions.

According to the revised directive issued on Oct. 5, the annual foreign exchange facility for Nepali citizens seeking medical treatment abroad has been increased from 16,000 to 30,000 U.S. dollars. Similarly, the limit for advance payments made through banks for the repair of aircraft engines or spare parts has been raised from 100,000 to 500,000 U.S. dollars.

The NRB has also doubled the annual limit for foreign exchange facilities provided by banks and financial institutions from 15,000 to 30,000 U.S. dollars. Telecommunication providers renting satellite services can now make annual payments of up to 500,000 U.S. dollars, up from the previous 100,000 U.S. dollars. The threshold for requiring a bank guarantee for advance service imports has also been raised from 15,000 to 30,000 U.S. dollars.

For transactions involving India, the payment limit has been increased from 4 million to 6 million Indian rupees. Businesses using export earnings to pay for imports can now utilize up to 30,000 U.S. dollars for third-country imports or 6 million Indian rupees for imports from India.

In the tourism sector, travel and tour agencies are now permitted to pay foreign agents based on invoices after services have been rendered. Furthermore, the central bank now allows ‘A’ class commercial banks to issue bank guarantees or standby letters of credit in foreign currency for Nepali firms in sectors including information technology, agriculture, manufacturing, infrastructure, tourism, and energy to facilitate foreign loans.

Additionally, the limit for foreign currency balances held on cards by users earning through online service exports has been doubled to 10,000 U.S. dollars. The annual exchange facility for such users to purchase goods and services abroad has also been increased from 500 to 10,000 U.S. dollars.