Kathmandu. Nepal Rastra Bank (NRB), the central bank of Nepal (NRB), has brought a new system on the import of silver after the price of silver rose steadily.
The central bank has amended the Integrated Circular to bring a new provision on the import of silver. Now, commercial banks that have obtained license to carry out foreign exchange transactions will have to import silver as per the new provision.
As per the directive, an industry dealing in silver will be allowed to import silver for its own purpose as an industrial raw material for the manufacture of silver jewelry, artistic goods, utensils, etc., up to the limit of US $ 5 lakh or equivalent to other convertible foreign currency. As per the provision, gold traders can avail exchange facility up to US$ 1 lakh or equivalent to other convertible foreign currencies while importing silver. As per the amended provision, the above limit will be up to US$ 2 million (for industry) and US$ 4 lakhs (for other entrepreneurs) in the case of industries and entrepreneurs importing only once a month (as per the new system).
Similarly, the following exchange facility may be provided to the silver traders exporting silver jewelry or artistic goods:
(1) An advance payment or letter of credit or purchase order from abroad in which the export order is confirmed.
(2) Exchange facility may be provided for the import of silver up to the value mentioned in the document referred to in point (1). Therefore, the payment limit shall not apply to the import of silver mentioned in this clause.
(3) The concerned commercial bank issuing the exchange facility shall, in each instance of providing the exchange facility, ascertain whether the silver has been imported and exported as prescribed, if the pre-exchange facility has been provided.
(4) A self-declaration regarding no arrears to receive payment for export by availing the facility of import of silver from any commercial bank other than the concerned commercial bank shall be obtained from the silver entrepreneur.
The silver traded at Rs 1,315 per tola today is being traded at Rs 7,300 per tola. That’s the highest ever.
