One of the worst inconveniences of being an online entrepreneur for a Nepali is not having an international payment gateway. However, International payment from Nepal will soon become a reality. NRB (Nepal Rastra Bank) has finally approved the payment gateway to ease off Nepalese professionals who rely on foreign payment gateways to perform transactions.
With the implementation of this said policy, banks in Nepal will be allowed to issue prepaid cards to their customers which will make payment in foreign currency possible. This means that NRB will enable banks to design an equivalent of PayPal or Payoneer which have been the most commonly used tools for foreign payment. However, there is a limit to the amount. A cardholder will make the payment up to only $500 a year.
Recently there has been an exponential growth of Nepalese in online activities. They are not just surfing Facebook or watching YouTube videos for a time pass. They have learned how the internet can be exploited for earning.
Now netizens are taking online jobs very seriously and seeing a career. This was not a common thing a few years back. Online freelancing is now a source of income for many youths. It is also an area where they are exploiting their creativity.
However, the biggest impediment to their online works or e-commerce activities had been the lack of an international payment system. Due to this, they had to rely on workarounds or even depend on their friends or families for payment. Now it seems those inconveniences will subside in a near future.
Check out: Spotify officially launches in Nepal
NRB’s Provision for the International Payment Gateway
The governor of Nepal Rastra Bank, Maha Prasad Adhikari, teased at the FonePay Digital Economy Conclave that Nepalese could soon make payment in foreign currency from Nepal. Now the NRB has introduced a provision of international payment in its quarterly monetary policy report for the year 2020/2021.
Benefits of Having an International Payment Gateway
With more and more people going over the internet, their online activities have turned into working, earning, and purchasing. But in the absence of a payment system, relying on relatives or friends or middlemen has cost people high amounts and inconveniences.
With this system Nepalese can pay for Netflix, Amazon, or TOEFL/GRE. Additionally, they can also pay for Facebook, YouTube Ads, and can also receive payments for online freelancing. While cardholders will also be able to pay for international training, web hosting, domain registration, and other services.
NRB has acknowledged that in the absence of a proper payment system, Nepalese are relying on workarounds. It related that such action would encourage Digital Hundi. The report also voiced concerns about how the country can lose revenues and concoct a shadow economy due to the lack of such a payment system.
NRB has maintained that encouraging a digital economy is one logic behind this new and popular policy. It believes the payment gateway will render a transparent online transaction. It will end the inconvenience of resorting to families and friends for online transactions.
Check out: Connect IPS review: Elevates the standard of digital banking in Nepal
NRB’s Conditions to Acquire This Service
NRB has set some conditions for users before they could acquire this service. Some of the most essential terms and conditions are listed below.
- Any individual or organization demanding the service would have to fill up and submit a KYC form and PAN details.
- The card will be functional from the day of its activation through which the cardholder can make the transaction up to $ 500 at once or many in a year.
- The user will not be able to deposit more than $ 500 at any given time.
- The user must arrange for foreign earnings to be deposited on the card. They must also ensure that the amount could be wired to their bank accounts inside or outside the country per their request.
- As per the request of the customer, the bank can deposit the amount based on the exchanged rate value of the very requested day.
- The customers won’t be authorized to buy any good or service that is deemed illegal in Nepal.
- A customer will acquire the service from one bank only. I found the contrary, the customer will be subject to repercussions according to the Foreign Currency Act 2019.
- While performing any transactions, users must conform to regulations, policies, and instructions as enshrined in Money Laundering Prevention Act 2064.
Once international payment from Nepal comes into effect, it could soon become a watershed moment for many investors, freelancers, and business personnel who have made online activities a source of income. Not only it will put an end to our reliance on international cards such as PayPal or Payoneer, but it would also encourage more to go online for works.
Check out: How to get a dollar card in Nepal?
Although the transaction limit is set at $500 for now, NRB will certainly be more flexible as it will minimize “Digital Hundi” and help enhance the digital economy. For now, all we can say is better late than never, it has finally arrived and we are happy and excited about the prospect.