Kathmandu. The recommendation of The Nepal Insurance Authority (NEA) has been made mandatory for insurance companies in Nepal to facilitate exchange of payments for specialist services.
Nepal Rastra Bank (NRB) has amended the unified directive issued for the licensed bodies to carry out foreign exchange transactions. According to the revised guidelines, Nepali insurance companies will be able to get it from commercial banks on the basis of recommendations of Nepal Insurance Authority for exchange of payments to natural people for specialist services (e.g. actuary, survey, valuation, etc.). Earlier, such a provision was not made.
In the earlier directive, the Government of Nepal, various agencies under it, government and semi-government organizations, banks and financial institutions licensed by the Rastra Bank demanded the facility of exchange of Indian rupees with necessary documents confirming the purpose for various purposes (e.g. import of goods and services, lease or lease purchase, membership fee, service payment, maintenance, advertisement, software purchase and service, printing, demurrage, legal services, consulting services, technical and other service charges). There is a provision that exchange facility can be provided for the purpose of making payment to the beneficiaries based in India as per the prevailing arrangement on the basis of a written commitment to submit.
According to the NRB, if such exchange facility is to be availed in the name of an individual, then the approval of this department must be taken.
