April 21, 2020, Kathmandu
Nepal Rastra Bank has facilitated the payment of foreign trade. The Rastra Bank has made such arrangements to facilitate the payment process as the government announced a lockdown across the country to stop the Coronavirus (COVID-19) infection.
According to Bam Bahadur Mishra, executive director of the Foreign Exchange Department of the Nation Bank, arrangements have been made to make payment based on the documents received by email during the lockdown period. Before this decision, the original LC document had to be submitted.
“Coronavirus infection has a global impact. In this case, it is felt that the provision of payment of LC only after the original document has been impacted in the international business. It is arranged to facilitate payment based on the copy of the e-mail provided to facilitate it.” Director Mishra said.
The NRB has set four grounds for payment based on the copy of the email received. The bank that paid the money on such grounds should have received a scan of the documents in its official email from the official email as mentioned in the Letter of Credit (LC).
Banks are requested to do an agreement with LC holder that the holder will be responsible if the goods as mentioned are not brought or Foreign exchange abuses are made. This arrangement will not apply if the LC is not opened.