June 9, 2021
Kathmandu: Nepal Rastra Bank (NRB) has unveiled ‘NRB Foreign Direct Investment and Loan Management Bylaw, 2078’ Tuesday. Through the bylaw, NRB has facilitated the inflow of foreign investment without the approval of the central bank.
As per the bylaw, it will not be mandatory for the foreign investor to obtain prior approval from the NRB to send or remit foreign currency to Nepal after obtaining foreign investment approval from the foreign investment sanctioning body. However, it is mentioned in the bylaw that after the investment is approved written information should be given to NRB before bringing or sending foreign currency.
Governor of Nepal Rastra Bank Maha Prasad Adhikari said that the bylaw would make it easier for investors. “NRB has facilitated the process of attracting and receiving foreign investment, which will make it easier to bring foreign investment,” said Adhikari.
The provision has been made in the bylaw that prior approval of investment in dollars or approval of NRB is not mandatory for foreign investors interested in sending / bringing foreign currency required for registration of industries and conducting feasibility study to Nepal through the banking system.
The provision has been made to calculate the expenditure on foreign investment of companies and industries which invested in foreign currency as certified by the auditor, so as not to exceed 3 percent of the paid up capital of the company and industry. Its accounting shall be done in accordance with Regulation 5.
However, in case of non-receipt of foreign investment or if the amount is more than the amount calculated in foreign investment, such amount cannot be refunded.
Source: The Rising Nepal Daily