Kathmandu – Nepal Rastra Bank’s prior approval is no longer required for all types of foreign investment to enter the country. The Nepal Rastra Bank has made a provision through the Nepal Rastra Bank Foreign Investment and Foreign Debt Management Regulations, 2078 (Fifth Amendment) that companies do not need the permission of the central bank to enter or exit Nepal from foreign investment.

The new amendment has abolished the old provision that required prior approval from the National Bank to enter or exit foreign investment in the change of share ownership. In addition, a provision has been made for foreign investors to get foreign currency exchange facilities directly from licensed commercial banks to repatriate the amount earned.

The National Bank says that the process of repatriating investment and earned amount has been further simplified with the aim of encouraging foreign investment in Nepal.

According to this provision, foreign investors will be able to repatriate the amount received from the sale of shares, profits or dividends earned from investments, the amount remaining after the liquidation of industries or companies, royalties received under technology transfer agreements, lease rent, damages or compensation received from legal proceedings, the amount received from the sale of units of special investment funds and other amounts that can be repatriated legally.