Nepal Rastra Bank tightens payment through dollar cards

KATHMANDU: Nepal Rastra Bank has made payments through dollar prepaid card strict. Rashtra Bank’s Foreign Exchange Management Department issued a circular on Tuesday and made provision that payment cannot be made with the card in 10 different merchant category codes.

According to the Merchant Category Code Dollar Prepaid Card payments, wire transfer, direct marketing of beam services, stamps and coins cannot be paid, according to the National Bank.

Similarly, the National Bank has banned payments to financial institutions (manual cash disbursement), business and services of financial institutions, foreign currency of non-banks and financial institutions, payment of money order passengers through dollar card, and payment through dollar prepaid card.

Securities Brokers/Dealers, Insurance Sales, Underwriting and Premiums, Real Estate Agents and Managers (Rentals) Payments to Commercial Banks, Card Purchase and Loading of Stores, Miscellaneous Services and Goods (High Risk Type), Casinos, Horse and Dog Racing, All Kinds Gambling, any kind of political parties and religious organizations cannot be paid through the card, the National Bank has made arrangements.

Rastra Bank has banned 18 payments through dollar prepaid cards. Nepal Rastra Bank has given approval to Commercial Bank and Bikas Bank to issue prepaid cards worth $500 for the purpose of payment for the purchase of goods and services from abroad through online.