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Nepal Rastra Bank (NRB) has approved a provision to make international payments via dollar cards. The commercial banks of Nepal can now issue dollar prepaid cards to their customers. Find the details and how to get the dollar card from banks in Nepal.
At first, Nabil Bank and NMB Bank had distributed the dollar card. Now almost all commercials banks provide the card after following some process. Also, these dollar cards can be used to make payments across the globe legally. This will surely encourage startups to grow more and use efficient tools.
In Nepal, people had to use foreign cards to buy foreign goods and services. It was difficult for Nepali customers to make international transactions from Nepal. But now, Nepalese can pay for Google apps, developer accounts, Netflix, eBay, Amazon Prime, Spotify, AWS, and several foreign online services using the dollar prepaid card.
The lack of international payment systems in Nepal can refrain you from purchasing goods, tools, and efficient services outside of Nepal. As a result, you need foreign cards to purchase such items digitally from a foreign land.
But now, the barrier is off. You can directly purchase international services, goods from within Nepal. For that, you would need a prepaid dollar card issued by a domestic bank.
The bank should have authorization from Nepal Rastra Bank to issue the prepaid card. Similarly, the bank can issue a prepaid card of only USD 500 in a year. It means you will have a validity period of 1 year to spend $500 on purchasing foreign services and goods.
There is also a provision to transfer up to $5000 to the card if you also earn from your online business. In case the amount of prepaid card exceeds $5,000, the customer must transfer the amount to the bank account.
To get the prepaid dollar card in Nepal, you need to follow the instructions below:
Only Nepali banks having NRB’s approval can issue those prepaid cards. Nabil Bank and NMB Bank first started to offer dollar cards to their customers. But almost all banks have followed suit.
You can exchange the convertible foreign currency with Nepali currency deposited in the prepaid card and use it for one year. The provision also enables you to collect foreign currency deposited in the prepaid card from a foreign online transaction.
Check out: Top Digital Payment Platforms in Nepal
International payment systems in Nepal using dollar card enables payment across national and international companies, which was already there for the large business. Now the small business and individuals can take this dollar card to promotes digital payment across the territories legally.
Due to the absence of an international payment system, customers were facing problems making international transactions. People in Nepal would ask their families and friends living abroad to make foreign transactions from the foreign card. Such a hassle was limiting Nepali customers to make international purchases.
But with this international payment using the dollar card, Nepalese can now make payments to international companies with their own card online. It reduces the hassle of the payment process for both individuals and organizations.
Similarly, growing small businesses and entrepreneurs will have an opportunity to expand their customer base. They can increase their networks. Likewise, they can purchase efficient tools and services for more innovation. It will support our digital economy.
What are your thoughts on the international payment system being approved in Nepal and the prepaid dollar card limitations? Tell us in the comment section below.