21 August 2024, Kathmandu
Nepal Rastra Bank has enacted a new regulation prohibiting Nepali citizens from opening bank accounts or investing in real estate abroad.
Nepal Rastra Bank Imposes Ban on Foreign Bank Accounts
The restriction follows the Foreign Exchange (Regulation) Act, of 2019, and the Prohibition of Foreign Investment Act, of 2021. This measure aims to curb foreign investments and ensure that financial transactions align with national economic policies.
Under the new rules, Nepali citizens are barred from opening foreign bank accounts or making investments in real estate or other types of foreign investments. The only exception allows Nepali individuals to open a foreign bank account solely to deposit earnings accrued while staying abroad. However, any funds deposited in such accounts must be repatriated to Nepal within 35 days of the individual’s return.
The notification from Nepal Rastra Bank stipulates that if a person wishes to maintain a foreign bank account or investment after returning to Nepal, they must report details of the account or investment to the bank within the specified 35-day period. This includes providing information such as the account name, address, account number, foreign currency used, and the amount involved.
This regulatory change is intended to control the flow of foreign capital and ensure that all foreign earnings are properly accounted for within Nepal. The move reflects the government’s efforts to strengthen control over financial transactions and maintain transparency in the management of foreign investments.
Nepal Rastra Bank Imposes Ban on Foreign Bank Accounts
