Foreigners working in Nepal to be able to draw salary in dollars

Kathmandu, September 12

Foreign nationals working in Nepal with various companies and organisations in the country can now withdraw their salary and allowances in US dollars from the commercial banks and national level development banks.

Issuing a circular to the class ‘A’ and class ‘B’ banks today, Nepal Rastra Bank (NRB) — the central regulatory and monetary authority — has allowed non-Nepalis employed in the country to make withdrawal of up to $3,000 in a month and $ 36,000 in a year from the banks.

Earlier, there was no provision for foreigners working in Nepal to get foreign exchange facility against their salary and allowances through the banks. However, foreign nationals used to get foreign exchange facility from the central bank.

“The move is aimed at facilitating foreign nationals working in Nepal to withdraw their salary in US dollars,” said Bhisma Raj Dhungana, executive director of Foreign Exchange Management Department of NRB.

Foreign nationals need to submit recommendation letter of the employer firm or organisation, work permit certificate issued by the Department of Foreign Employment (DoFE), contract letter with the employer, receipt of tax submission and validity period of the visa with an application to get the foreign exchange facility extended by the central bank.

The central bank has also allowed foreign nationals to transfer 75 per cent of their income, excluding tax, to their country of origin. As per the new rules of the central bank, foreign national working in Nepal can also transfer the amount collected in the provident fund and pension fund after deducting tax.

Foreign nationals wishing to withdraw or transfer higher amount than that allowed in today’s directive will have to approach the central bank, according to Dhungana.

Also, the central bank has reduced the number of documents requirement for Indian nationals working in Nepal to get the foreign exchange facility against their salary and allowances. Indian nationals can also transfer up to 75 per cent of their income after deducting taxable amount. Indian nationals are exempt from the requirement of submitting work permit certificate issued by the DoFE and visa-related provisions, as per the circular issued by NRB today.

Central bank to allow import of 100 gram gold coins

KATHMANDU: The central bank is preparing to issue a circular to allow the commercial banks — authorised importers of gold in the country — to import 100 gram gold coins as well. Import of coins was restricted after the central bank imposed import quota to curb the rampant import of gold after the Balance of Payment (BoP) crisis of 2010-11. Commercial banks are allowed to import 15 kg gold per day, as per the Gold Import and Distribution Guideline-2011. The commercial banks are also allowed to import one kg gold bars. Nepal Rastra Bank is holding discussions regarding the same with the Department of Commerce (DoC) as the latter had written to the central bank few weeks back to allow import of gold coins so that small jewellery shops can easily purchase the required amount of gold from the banks. As the banks prefer to sell the one kg bars, many jewellery shops are currently purchasing gold in a group and dividing among one another. Many have lodged complaints to the DoC regarding difficulties in purchasing gold from the banks. However, bankers say that buying gold bars is more cost-effective than the 100 gram coins.