Foreign nationals working in Nepal with various companies and organisations in the country can now withdraw their salary and allowances in US dollars from the commercial banks and national level development banks.

 

Issuing a circular to the class ‘A’ and class ‘B’ banks today, Nepal Rastra Bank (NRB) — the central regulatory and monetary authority — has allowed non-Nepalis employed in the country to make withdrawal of up to $3,000 in a month and $ 36,000 in a year from the banks.

 

Earlier, there was no provision for foreigners working in Nepal to get foreign exchange facilities against their salary and allowances through the banks. However, foreign nationals used to get foreign exchange facility from the central bank.

 

“The move is aimed at facilitating foreign nationals working in Nepal to withdraw their salary in US dollars,” said Bhisma Raj Dhungana, executive director of Foreign Exchange Management Department of NRB.

Foreign nationals need to submit recommendation letter of the employer firm or organisation, work permit certificate issued by the Department of Foreign Employment (DoFE), contract letter with the employer, receipt of tax submission and validity period of the visa with an application to get the foreign exchange facility extended by the central bank.

 

The central bank has also allowed foreign nationals to transfer 75 percent of their income, excluding tax, to their country of origin. As per the new rules of the central bank, foreign nationals working in Nepal can also transfer the amount collected in the provident fund and pension fund after deducting tax.

 

Foreign nationals wishing to withdraw or transfer higher amount than that allowed in today’s directive will have to approach the central bank, according to Dhungana.

 

Also, the central bank has reduced the number of documents required for Indian nationals working in Nepal to get the foreign exchange facility against their salary and allowances. Indian nationals can also transfer up to 75 percent of their income after deducting taxable amount. Indian nationals are exempt from the requirement of submitting a work permit certificate issued by the DoFE and visa-related provisions, as per the circular issued by NRB today.