Nepalis allowed to make online purchases using cards
Nepalis can now make online purchase using debit and credit cards from home.
“The new provision will ease purchasing goods from abroad online to consume within the country,” according to the central bank directive.
The central bank has for the first time allowed Nepalis earning in US dollar terms and those having US dollar accounts in banks to purchase goods online using debit/credit cards.
Nepalis can purchase goods not prohibited in the country worth $2,000 a year, according to acting executive director and chief of Foreign Exchange Management Department in central bank Bhisma Raj Dhungana.
The Monetary Policy 2014-15 has stated that the central bank will ease online purchase for the consumsion in the country. But the policy has barred to invest abroad under the facility, though there is not a strong mechanism to check wither the purchase is real or fake. Fake transactions could help outflow the precious US dollar out of the country.
Likewise, the banks can issue credit cards with a limit up to $10,000 – double from the current provision – on condition the transactions are settled in foreign exchange terms, the central bank directive read, adding that it will help people going abroad for visit/treatment purposes. “Earlier, people would get only up to $5,000 dollar credit.”
The central bank hass also relaxed the dollar credit card provision. Now, an individual, who earns in foreign currency, but does not have a US dollar account, can also get the dollar credit card. “However, foreign currency earners should have dollar accounts as settlements should be done in foreign exchange terms, the central bank directive read. “Likewise, if a person has received approval to carry a certain amount of foreign exchange while travelling abroad, but has not spent all the money, one can adjust the expenditure made through credit cards.”
But one has to sign written commitment while receiving dollar credit cards – with banks – that they would be ready to face action under Foreign Exchange Regulation Act, if they fail abide by the conditions.