The Nepal Rastra Bank (NRB) has introduced a new provision requiring casinos and similar institutions to obtain formal approval before conducting any foreign currency transactions. Issuing a notice, the central bank stated that under Section 3 of the Foreign Exchange (Regulation) Act, 2019, no entity shall engage in foreign exchange transactions without permission from the NRB. The move is aimed at tightening regulatory oversight and ensuring transparent operations in sectors that deal with foreign visitors and cross-border currencies.
Casinos Must Obtain Authorization
Recalling that several regulations related to foreign exchange have already been issued, NRB clarified that the new provision specifically applies to casinos and similar businesses. Such institutions must now seek authorization to buy, sell, or exchange foreign currencies, including Indian rupees, for operational or customer-related purposes. According to the NRB’s notice, this measure ensures compliance with national financial laws and helps prevent misuse of foreign currencies in the entertainment and tourism industries.
Revised Card Transaction Limits Announced
Alongside the new foreign exchange policy, the central bank also released a unified directive on payment systems, revising transaction limits for debit, prepaid, and credit cards. Under the updated rule, debit card users can now spend up to Rs. 20,000 per transaction and a maximum of Rs. 50,000 per day. Previously, the daily limit was set at Rs. 100,000.
Similarly, prepaid card transactions are now limited to Rs. 10,000 per transaction and Rs. 20,000 per day, with a monthly ceiling of Rs. 200,000. However, the NRB clarified that there has been no change in prepaid card policy, meaning earlier provisions remain applicable for certain transaction categories. In the case of credit cards, the existing rule allowing usage up to 10 percent of the approved limit remains unchanged.
Strengthening Oversight in the Financial System
Officials at the central bank noted that these new measures aim to enhance financial discipline, curb excessive cash flow, and ensure greater security in electronic and foreign currency transactions. By mandating regulatory approval for casinos and tightening card usage limits, NRB seeks to promote responsible spending and safeguard Nepal’s foreign exchange reserves.
