Nepal Rastra Bank (NRB) has arranged for Nepali entrepreneurs to receive foreign currency in their digital wallets for goods and services. The move aims to facilitate Nepali businesses with easier and more efficient business transactions and enhance the digital economy.
The regulatory bank made the provision in the Unified Circular 2081, which was issued by its Department of Foreign Exchange Management. The provision allows Nepali merchants to receive foreign currency in their digital wallet accounts via QR codes from foreign payment instruments.
However, the transaction must go through the Retail Payment Switch (RPS). The system will soon be processed through the National Payment Switch (NPS).
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Benefits of businesses receiving foreign currency on Nepali digital wallets
Receiving foreign currency in digital wallets removes the need for customers to exchange foreign currency. It makes their shopping more convenient while also enhancing merchants’ businesses with greater monetary flexibility.
But service providers such as banks and financial institutions, and digital wallets must settle transactions in Nepali currency through a Nepali settlement bank.
NRB states that all the risks, management, and responsibilities for these transactions are to be held by BFIs and payment service providers (PSPs), aka digital wallets.