With increased international payments from Nepal as it didn’t have a convenient gateway for International Payment, Nepal Rastra Bank (NRB) finally approves of Prepaid Dollar Card which allows a person to do the transaction for Shopping, Purchasing subscription like Netflix, buying a domain, web-hosting services, for a limited amount.
In the official document circulated by the NRB as for the year 2020/2021 , the point 66 can be translated into " Arrangements will be made for online purchase of foreign goods and services making the currency conversion limited "
Although the news was circulated on Mangshir 18, 2077 it’s been a month and further notice has not aired yet. Nepal Rasrta Bank seems preparing the policies regarding this international payment gateways and distribution of Prepaid dollar card in Nepal. However, one thing we can be sure is that Nepalese citizens can purchase things directly from their card without calling their friends and relatives residing abroad. And this is what the main reason behind approving the international payment gateway in Nepal.
Why NRB approves International Payment Gateway Now?
Instead of doing a favor for making Digital Nepal, NRB seems to be disappointed with people using their relatives PayPal/ Payoneer card for making international transaction. As, there was no trace of where the money went and where the money came from, the government couldn’t impose tax on them. Thus, naming these activities as Digital Hundi.
Furhtermore, with the increase in digital ads, rising of top-notch brands, the huge sum of money goes to sicail medias like Fcebook and Instagram. Seems like there was a huge loss to Nepalese Treasure as the tax were deprived.
So in the name of international payment gateway, Nepal government plans to make transparent transaction so as to collect tax from those part. However, it will be benefited for large amount of citizens where as small retailers and ecommerce stores may have to be under dog in front of the giant companies which will make Nepalese market their target.
Is Prepaid Dollar Card the solution?
Fortunately yes, once the policies turns ito operation it can be very beneficial to the people to promote their business, to involve in entertainment activities, to buy goods from Amazon, Alibaba, to watch Netflix with our won card, to buy hosting’s, to promote ads, and many more.
However, the policy only allows to buy goods and services and restricts other activities. We can hope once the the policy starts we can see its improved phase as well.
The government is also looking for the places how the orders can delivered. The available choices being Cargo, by air, land, sea. This is a challenging part for the government and the policy to come in action should be sorted out previously. So we can assume we will get our prepaid dollar card in the mid of 2021.
How Can I get my Prepaid Dollar Card?
Once the policy turns to action, every bank can authorize you a prepaid dollar card which you can use to do the above listed activities.
There are something NRB would like you to keep in mind before you make your dollar card in Nepal:
1) Nepalese cardholders are allowed to deposit a maximum of $500 for international payment.
2) The existing fund in the Nepalese rupee in the respective bank account can be converted to foreign currency for that purpose.
3) Payment can be done only for the purchase of goods and services allowed by Nepalese laws.
4) Only one card can be made for international payment from only one bank by an individual or entity. Usage of multiple cards from multiple sources is a punishable act.
5) KYC and PAN are needed to apply for the Prepaid card.
6) If the cardholder is found to have generated foreign income amounting to at least double the card amount of $500, additional funds may be deposited to the card. This can be considered as NRB’s reward to the cardholder for generating international revenue for the country.