Facility for International Payments QR Code

Nepal Rastra Bank has amended the ‘Unified Circular–080’ issued to licensed foreign exchange entities to allow international payments through QR codes. Following this amendment, the following facilities have been made available:

- Payments through Electronic Systems: In addition to electronic cards, e-banking, mobile banking, interbank payments, and QR codes can be used for exchange, sales of goods and services, and remittance inflows.

- Facility for Indian Citizens: Indian citizens working in Nepal can use electronic systems, including accounts opened in Nepali commercial banks and national-level development banks, to deposit up to INR 15,000 per day and INR 100,000 per month.

- Facility for Nepali Citizens: Nepali citizens can use QR codes to pay for goods and services up to INR 100,000 per month in India and Bhutan.

- Payments without Cards: By adding Section 9 to the Unified Circular–080, the facility for merchant payments through electronic means other than cards is available in India and Bhutan.

New Provisions for Remittance and Exchange Facilities

- Bringing in Remittance: QR codes can now be used to bring in remittances from India to Nepal.

- New Provisions: These remittance amounts can be deposited into the accounts or wallets of licensed financial institutions and payment service providers authorized to conduct foreign exchange transactions.

- Exchange Facility: Until the National Payment Switch is fully operational, exchange facilities, remittances, and foreign payments can be conducted through the Retail Payment Switch (RPS).

Impact of the New Rules

- Ease of Payments: Payments via QR codes will make electronic transactions easier.

- Increase in Trade: The availability of facilities for exchange, sales of goods and services, and remittance inflows will boost trade.

- Legitimacy: Institutions without a license to conduct foreign exchange transactions can also carry out transactions via QR codes.

This move by Nepal Rastra Bank will make international payments more convenient, secure, and practical.