NRB enables unregulated foreign companies to make profits based on self-declaration – myRepublica

KATHMANDU, June 29: Foreign companies without regulatory oversight in Nepal will now be able to repatriate dividends abroad based on self-declaration. Nepal Rastra Bank (NRB) has simplified the process by amending the foreign exchange regulations.

NRB clarified that companies or branches subject to regulatory oversight in Nepal require the approval of the relevant regulatory authorities for repatriation of profits. In case of entities operating without such oversight, the approval will be granted based on their application and self-declaration.

Before the dividends can be repatriated, these transactions must be disclosed and approved by the NRB. Foreign companies in Nepal include banks, financial institutions, insurance companies and entities in non-hydropower sectors, regulated by bodies such as the Department of Industry.

The latest change to NRB regulations aims to facilitate the repatriation of profits by consulting firms and small and medium-sized enterprises that lack regulatory oversight.

In addition, the updated NRB guidelines now allow Indians living in Nepal to transfer their earnings online to their Indian bank accounts. As per these guidelines, individuals can transfer up to Rs 15,000 per day or Rs 100,000 per month through the Retail Payment Switch (RPS).