Central bank raises dollar exchange facility limit for service imports from non-Indian countries

KATHMANDU: Nepal Rastra Bank (NRB) has increased the foreign exchange facility limit for service imports from countries other than India, amending its Integrated Circular 2081 issued to licensed foreign exchange transaction institutions.

Under the revised provision, firms, companies, or institutions registered in Nepal can now access an exchange facility of up to USD 8,000 (or equivalent in other convertible foreign currencies) in a single transaction for service imports from non-Indian countries without requiring prior approval from regulatory authorities.

If the transaction exceeds USD 8,000 and creates a foreign exchange liability — such as payment obligations to a foreign service provider — the entity must first obtain a recommendation or approval from the relevant regulatory authority.

Higher Threshold for Approval on Large Service Imports

NRB has also revised the threshold for requiring a regulatory recommendation for larger service imports. Now, importing services worth more than USD 15,000 in a single instance will require a recommendation from the concerned regulator. Previously, this threshold was set at USD 12,000.

For service imports exceeding USD 15,000, the transaction will require not only the regulator’s recommendation but also approval from NRB’s Foreign Exchange Management Department.

In cases where there is no applicable regulatory body or a recommendation cannot be obtained, NRB’s approval will be mandatory for payments above USD 8,000.

For advance payments above USD 15,000 (or equivalent) for service imports, a bank guarantee from a foreign bank will now be required.

Special Provisions for Language and Standardized Testing Services

The revised rules also apply to payments for language exams and standardized tests conducted in Nepal by foreign institutions — such as IELTS, TOEFL, PTE, GRE, GMAT, and SAT.

Nepali institutions importing these services can now make payments of up to USD 15,000 per transaction directly through commercial banks without NRB approval, provided they meet the prescribed documentation requirements. In such cases, a regulatory recommendation will not be mandatory.

Export Advance Payment Certificates

The amendment introduces a provision allowing exporters to receive payments based on advance payment certificates issued for export proceeds. Exporters whose export payments have been received but have not yet been issued advance payment certificates can obtain them by mid-January 2026 (Poush end 2082) without restriction.

A Permanent Account Number (PAN) is now mandatory for all service import payments.

Other Foreign Exchange Facilities

Travel, medical treatment, and higher education: Exchange facilities will be provided based on necessity and justification.

Foreign-issued documents: All documents from foreign institutions must be authenticated.

Interbank forex transactions: Licensed commercial banks, development banks, and infrastructure development banks are allowed to engage in interbank convertible foreign currency transactions for up to seven days.

Special Provision for Insurance Companies

Nepali insurance companies making payments to individual professionals from India for specialist services — such as actuarial, survey, and valuation services — will no longer require prior approval from NRB.

According to the revised directive, these payments can be made through commercial banks based on recommendations from the Nepal Insurance Authority.