Nepal Rastra Bank Requires Casinos to Obtain License for Foreign Currency Transactions

Kathmandu — The Nepal Rastra Bank (NRB) has introduced a new rule requiring casinos and similar institutions to obtain official authorization before engaging in foreign currency transactions.

In a public notice issued on Tuesday, the central bank stated that, under Section 3 of the Foreign Exchange (Regulation) Act, 2019, entities must obtain a license from NRB to conduct foreign exchange activities.

According to the new provision, casinos and similar establishments must receive formal approval from NRB to conduct or facilitate transactions involving foreign currencies, including Indian Rupees. Previously, casinos were informally using foreign currencies, but under the new rule, such transactions will only be permitted with official authorization.

NRB noted that this move builds on existing foreign exchange regulations and aims to enhance transparency and regulatory oversight in currency dealings within entertainment and hospitality sectors.

At the same time, the central bank has also issued a Unified Payment System Directive, setting new transaction limits for debit, credit, and prepaid cards.

Under the revised guidelines:

• Debit cards can now be used for transactions of up to NPR 20,000 per transaction and NPR 50,000 per day (previously NPR 100,000 per day).

• Prepaid cards are limited to NPR 10,000 per transaction, NPR 20,000 per day, and NPR 200,000 per month — the same as before, with no changes.

• For credit cards, the earlier provision allowing transactions up to 10% of the approved limit remains unchanged.

NRB stated that these measures are intended to strengthen financial discipline, enhance transaction security, and ensure better control over the payment system.