Kathmandu. Nepal Rastra Bank has started tightening the foreign exchange rate. As the balance of payments is in deficit and foreign exchange reserves are under pressure, the banking department of NRB has started giving verbal instructions to call representatives of banks and financial institutions to pay only a limited amount of cash and encourage the use of electronic cards in the remaining transactions.

A NRB source said that the department has given such instructions verbally by calling the representative of the bank. However, the existing policy on foreign exchange has not been changed. NRB has admitted that discussions have been held with the banks to ensure that only those in need get foreign currency and not misuse it.

Under the current arrangement, workers going abroad for employment can exchange a maximum of 200 US dollars per person and those going on a tourist visa can exchange a maximum of 1,500 US dollars per person. NRB is keen to tighten the rules, especially as the risk of corona infection is declining and banks are finding that there is a lot of foreign exchange for tourist visas. During the on-site monitoring, the NRB had found that those going on tourist visas had exchanged a lot of money. Therefore, the banks have been requested to provide exchange facility through limited cash and remaining cards to justify it, said NRB spokesperson Dev Kumar Dhakal.

According to a source, the agent was found to be exchanging foreign currency and later withdrawing it through a worker flying a tourist visa.

There is a provision to show 500 to 1000 US dollars at the immigration department at the airport when going abroad on a tourist visa. According to the department, especially after the second wave of Corona, many workers have gone on tourist visas.