Nepal Imposes e-Payment Limit for Citizens in India

07:06 GMT, 27 December 2018

Nepal’s Central Bank has set a limit on the payments that a Nepali national can make in India through debit and credit cards issued in Nepal. According to a Nepal Rashtra Bank spokesperson, the main objective of the central bank is to control capital flight.

Sputnik

New Delhi (Sputnik): Nepal's central bank, Nepal Rashtra Bank (NRDB), has set a limit of Indian Rupees 100,000 ($ 1,423) per month while making payments for goods and services in India using debit, credit, and other prepaid cards.

"The step is mainly aimed at curbing expenditure on unproductive purchases in India as Nepal's foreign currency reserves are strained", NRB Spokesperson Narayan Prasad Paudel told Sputnik.

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However, payments to hotels, hospitals, and pharmacies have been exempted from this limit.

Recently, Nepal banned the use of Indian currency notes of denominations 200, 500 and 2,000 in the country. The Indian currency is widely used in Nepal.

Nepal's current foreign exchange reserves stand at Nepalese Rs 1,082.91 billion, of which the share of Indian currency in the total foreign exchange reserves comprises 24 percent. Nepal uses Indian currency also to maintain its foreign reserves.