Skip to main content

Prepaid Dollar Card from Nepal and payment restrictions per latest circular from Nepal Rastra Bank

It has been over a year since Nepal Rastra Bank allowed Nepalese Citizens and business houses to own a prepaid dollar card worth US$ 500 for the online transactions. The cap of US$ 500 is per annum. To get the dollar card, one must visit the bank (only Class A and B bank can issue such cards) and submit the following document:

a) Prepaid Dollar Card Application (this can be obtained from concerned bank customer service desk)

b) Updated Know Your Customer (this can also be obtained from concerned bank's customer service desk)

c) Copy of the PAN Card Number (Original must also be carried in person for verification)

Once the necessary form is filled and verification of documents, bank will then create a linked dollar account. This is separate to any other accounts you maintain in the bank. Amount transferred will be equivalent Nepalese Rupee for US$ 500 as of the day when the bank approves such prepaid dollar card. It generally doesn't take more than a day. However, to receive a physical except few banks which might provide instant cards, one will have to wait for additional 4-5 days.

Please note that prepaid dollar card can only be used for the online transactions as allowed by Nepal Rastra Bank and cannot be used over POS machines or ATM. On 2079/05/14 (i.e. 30 August 2022), Nepal Rastra Bank issued a circular restricting the payments to the following 17 merchant codes.

Merchant Code Category            Description

4829                                            Money Orders - Wire Transfers

5960                                            Direct Marketing - Insurance Service

5972                                            Stamp and Coin Store - Philatelic and Numismatic Supplies

6010                                            Financial Institutions - Manual Cash Disbursements

6011                                            Financial Institutions - Manual Cash Disbursements

6012                                            Financial Institutions - Merchandise and Services

6051                                            Non-Financial Institutions – FCY, Money Orders & TC

6211                                            Security Brokers/Dealers

6300                                            Insurance Sales, Underwriting, and Premiums

6513                                            Real Estate Agents and Managers - rentals

6534                                            Money Transfer 

6540                                            Stored Value Card Purchase or Load

7273                                            Dating Services

7801                                            Internet Gambling               

7802                                            Government licensed Horse/Dog racing

7995                                            Gambling Transactions

8651                                            Organizations, Political

8661                                            Organizations, Religious

The last data NRB published on mid-December 2021 shows issuance of 18,111 cards and the total payment of US$ 1.9 million. 

It seems like NRB wants us to use such prepaid dollar card only for transactions such as 

- social media marketing via facebook, instagram, tiktok etc., 

- payment of the fee for IELTS, GRE, 

- online purchases by e-commerce sites, 

- study sites such as edx, coursersa etc.

- web hosting

- University application etc.


Labels:

Comments

Post a Comment

Most Viewed

Windfall Gain Tax (आकस्मिक लाभमा कर) per Nepal Income Tax Act

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...
Post a Comment
Read more

Process for Electronic Billing Software Registration with Inland Revenue Department Nepal

Process is straight forward, one is required to submit the online form along with the following documents: 1)       Copy of the Tax Clearance Certificate 2)       Copy of the Permanent Account Number (PAN) 3)       Copy of Company Registration Certificate 4)       User Manual for the software signed by company representative and stamped on each page 5)       Guarantee letter that Data Amendment or Edit (Manipulation) is not possible on the software 6)       Data Backup and Recovery System is available on the software 7)       System Architecture Detail 8)       Software Set Up file and Invoice Sample in Excel – 20 copies each in 20 pen drive 9)       Connection with Central Billing Management Software (CBMS) – API can be collected Service Branc...
17 comments
Read more

Tax Collection Agency codes for IRD Offices all over Nepal

Inland Revenue Department Nepal has published the agency codes that shall be used for the collection of direct and indirect taxes for the general public's information. Each code consists of 9 numbers. There are in total 59 agency codes currently in use. From these codes, we can classify that there are four types of IRD offices currently in operation. 1) Inland Revenue Office 2) Tax Payer Service Office 3) Large Tax Payer Service Office, and 4) Medium Tax Payer Service Office When shall you use these codes? It shall be used while choosing the agency where the tax should be deposited while completing the form for depositing the taxes. Agency Code list below: S.N. Agency Code Name Address 1 305011620 Inland Revenue Office Lahan 2 305030201 Tax Payer Service office Phidim 3 305030301 Tax Payer Service office Illam 4 305030401 Tax Payer Service office Khandbari 5 305030601 ...
1 comment
Read more