Central bank eases withdrawals from foreign currency accounts

NEPALI citizens working in international organisations and maintaining foreign currency accounts in Nepali banks can withdraw up to $10,000 at a time and up to $20,000 in a year to purchase authorised goods and for tourism, education and health, according a new central bank circular issued on Monday. Nepal Rastra Bank (NRB), however, has made it clear in the circular that they cannot use the facility for capital investment. The central bank has also allowed Nepalis and foreigners who earn foreign currency and have foreign currency accounts to withdraw up to $10,000 in a year. “They can utilise this facility at one go or on instalment basis,” states the circular. The NRB has also allowed foreigners, including tourists, to open accounts in Nepali banks and financial institutions, but the account will be valid only until their visa expiration date. “Such an account can extended based on the visa extension,” state the NRB. If foreigners residing in Nepal are willing to continue such accounts just to make payments, they can do so by updating their personal details with the BFIs. If a foreigner intends to leave the country, the foreign currency in his/her account can be transferred to his/her account in the foreign bank by closing the account in Nepal. “For this, the foreigner needs to produce documents verifying that s/he is leaving the country,” states the circular. The central bank has also included a clause that states if any person or an institution receives grants, donations or gift in foreign currency, they can open foreign currency accounts by revealing the source. For doing so, individuals need to produce their personal identity cards, while institutions are subjected to present registration documents.