Nepal Permits Digital Payments for Third-country Transactions

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Nepal Permits Digital Payments for Third-country Transactions

After India, Nepal’s central bank has opened the digital payment system for third countries, pending the completion of necessary arrangements by Nepal’s commercial banks for its formal enforcement. The policy introduced on Friday, for the first time, will allow foreign citizens in Nepal to pay through a quick response (QR) code for purchases in Nepal. Bankers say they will implement the system soon. The central bank by amending the inter-country payment system through QR code guidelines, has introduced a provision to allow foreigners to make payments while purchasing goods and services from Nepali traders in foreign currencies through the national payment switch, using the QR codes issued in their respective countries.

The funds will be received by the sellers’ bank accounts in a convertible currency. The NRB has now permitted Nepali banks to allow foreigners from all countries to make payments in Nepal using QR codes. Under the reciprocal basis, Nepalis traveling to third countries can also make foreign currency payments using the QR code through the national payment switch with the bank account associated with Nepali commercial banks, according to the amended guidelines. 

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