Non Resident Nepali' (NRN) are now allowed to open foreign currency savings accounts in commercial banks in Nepal. In addition, a company promoted by NRN will also be able to open such an account in a bank in Nepal.
Nepal Rastra Bank made such arrangement by amending the Unified Directive on Monday. The NRB had made such arrangement last week while reviewing the first quarter of the current fiscal year's monetary policy. NRB has now implemented the provision by amending the Unified Directive.
Earlier, NRNs were allowed to open only foreign currency term accounts in Nepali banks. Now, the way has been opened for them to open a savings deposit account, said Dev Kumar Dhakal, Executive Director of NRB.
He said that such arrangement has been made keeping in view the current liquidity shortage and declining foreign exchange reserves in Nepal. When opening such an account, a minimum deposit of 5,000 Dollar is required. Such deposits have to come from the banking system from abroad. In addition, it has been arranged to pay the principal and interest through the banking system.
NRNs have also been facilitated to open term deposit accounts. NRNs will now be able to open term deposits at a minimum of 5,000 Dollar. Also, the minimum term of term deposit is limited to 1 year.
Earlier, a minimum deposit of 10,000 Dollar was required when opening a term deposit in foreign currency. The minimum term deposit was 2 years. He said that such arrangement has been made with the objective of increasing foreign exchange deposits. This type of account can be opened in US Dollar, Euro, Pound Sterling, Australian Dollar, Canadian Dollar, Japanese Yen and Chinese Yuan.