Nepal Rastra Bank (NRB) has revised its foreign exchange regulations, making it easier for service importers to access foreign currency amid strong reserves in the national treasury. As per the updated Unified Circular 2024, the central bank has raised the foreign currency payment threshold for various service-related transactions.
Under the new rule, businesses importing services from countries other than India can now receive up to USD 8,000 without prior approval from NRB—up from the earlier USD 5,000 limit. However, any payment exceeding that threshold will still require regulatory approval. For advance payments over USD 15,000, a bank guarantee from a foreign bank is now mandatory, revised upward from the previous USD 12,000 threshold.
Additionally, institutions conducting foreign language proficiency tests like TOEFL, IELTS, GRE, GMAT, and SAT can now remit up to USD 15,000 per transaction without seeking central bank clearance. In another relief, insurance companies no longer need NRB’s approval to pay Indian-based actuaries, surveyors, and valuators. These payments can now be made directly via commercial banks based on recommendations from the relevant regulatory body.
Revati Prasad Nepal, Head of NRB’s Foreign Exchange Regulation Management Department, explained that these changes are designed to simplify and facilitate service imports, making foreign transactions smoother and more efficient.
In contrast to the relaxed forex rules, NRB has imposed stricter environmental compliance measures for vehicle imports. As part of enforcing the new Nepal Vehicle Emission Standards 2025, banks and financial institutions are now prohibited from opening Letters of Credit (LC) for four-wheelers that do not meet EURO VI emission standards.
This policy affects both new and reconditioned vehicles, including cargo transporters. For two- and three-wheelers, the minimum requirement has been set at EURO V standards. The directive aims to align Nepal’s vehicle imports with global emission norms and support sustainable environmental practices.
Together, these regulatory changes reflect NRB’s dual focus on promoting economic ease through liberalized foreign exchange policies and protecting public health and the environment through stringent import controls.
