Nepal Rastra Bank (NRB) sets the limit for the digital payments in Nepal. With a new directives, the central bank poses a threshold for all of the payments like credit / debit card, mobile banking, internet banking and wallet payments. After the news circulated, people have started commenting for the NRB directive to be discouraging.
To regularize the digital payment and prevent the misuse of such payments, NRB has come up with the new arrangement. Although there has been some limit on the ATM debit / credit card usage, there was no any fixed limitations in the growing mobile and internet based payments. The ATM cash out limitations were also not synchronized among the different banks.
NRB has reduced the usage of ATM debit and credit card. Now, people cannot takeout money more than Rs 25000 in one transaction. Before, some banks had provision to cash out up to Rs 35000 in one time and up to Rs 100,000 per day. The limit of Rs 100,000 per day remains the same and the no of transaction could not be more than 4 times. Similarly, for credit card, people wont be able to take out more than 25 percent of the amount. But previously banks used to provide credit services for amount higher than the limit.
For mobile payments, they have set limit of Rs 5000 for one transaction and Rs 10,000 for a day. Whereas people cannot pay more than Rs 50000 in a month using their mobile. Similarly for internet payment, they can only do the transaction of Rs 100,000 (1 lakh) for a day and up to Rs 1000000 (1 million) in a month. This has put a limitation on the remittance from people abroad. Now, to transfer more than Rs 1 Lakh money people need to use bank transfer.
For mobile wallets, there is a limitation of Rs 5000 per transaction, Rs 10000 per day and Rs 25000 per month. But for bill payments of telephone, mobile, electricity, water and ADSL, people can pay all the amount that is due in the bill.
Is the regulation encouraging or discouraging the digital payment?
As the NRB new directives is out, some of the digital payment service providers, banks, tech pundits and other stakeholders have pointed it to be discouraging. Although NRB officials claim it to be encouraging, some twitterati tweet against it.
भ्रष्टाचार निर्मूल पार्ने सरकारको घोषणा तर विद्धुतिय कारोबारमा राष्ट्र बेैंकको यस्तो बन्देज, खैके खैके…. https://t.co/Uw9OeJBcBo
— Subash Sharma (@subashsharma) April 16, 2018
Another tweet from @Subashsharma also compares the directive or regulations of mobile payments between India and Nepal. Satirical comparison of Digital Nepal vs Nagad Nepal says it all, find the tweet and the snapshot of the two provisions there. Click the link to have a clear picture.
Digital India Vs नगद नेपाल pic.twitter.com/FqAoay1K85
— Subash Sharma (@subashsharma) April 17, 2018
According to Setopati, NRB can later increase or decrease the cap after the analysis of this new directives. We have already witnessed the growth of the digital payments especially in Mobile and Internet payments. We also think NRB should not curb the usage of the payments in such low amount where people cannot even buy a return flight ticket through mobile or internet.
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