Bank accounts must in Nepal for people heading abroad to work

KATHMANDU, May 29: Those leaving for foreign employment will now be required to open bank accounts before flying abroad.
“The new requirement aims at channelizing the flow of remittances into the country through formal channel,” Minister for Finance Krishna Bahadur Mahara said, presenting the budget for Fiscal Year 2017/18 at the parliament on Monday. “Arrangements will be made toward making it mandatory for aspiring migrant workers to open a bank account before going for foreign employment. They will send the remittances to their own bank account.”

He also said that the government will encourage migrant workers to invest their hard-earned money in productive sectors including ‘remit hydro’.

Though the country received a total of Rs 665 billion in remittances through formal channel in Fiscal Year 2015/16, it is estimated that many Nepalis abroad send their earnings through informal channels like Hundi. While the government has been introducing measures to encourage the use of formal channel for remittances, such efforts have not become much effective, according to observers. In the budget speech for the current Fiscal Year 2016/17, the government had announced 25 percent discount on registration fee of land and housing units bought from cash remitted through formal channel.

Mahara also said that the government will provide skill training and capital at subsidized interest rates to youth to promote self-employment. Labor sector will receive a total of Rs 1.14 billion in budget in the upcoming fiscal year, according to Mahara.
The government has continued its plan to distribute the social security allowances through banking channel in the new fiscal year as well. While the government has been distributing such allowances through banking channel in some districts, the plan to hand over cash through the banking channel has not fully materialized due to absence of bank and financial institutions in many remote places. The government has allocated Rs 36 billion to distribute social security allowances to elderly people, single women, Dalit and disabled, among others.


In order to increase people’s access to finance, the government has said that it will make necessary arrangement for opening branch office of at least one commercial bank in each local unit. “The campaign ‘bank account for all Nepalis’ started in this fiscal year will be effectively implemented in the coming fiscal year as well,” said Mahara.

The government will encourage banks to provide branchless banking, Internet banking and mobile wallet, among other technology-based financial services, according to Mahara. Similarly, the government has given continuity to the scheme of providing agro loans at subsidized interest rate of 5 percent.

Salary and payments made from the government fund will be channelized through bank account of respective individuals or organizations, according to the budget speech. Similarly, the government also plans to get the revenue from e-payment and make international payment through e-payment after getting e-gateway for international transactions.

Source: Republica

Corporate News

India makes exemption for Nepal, allows some refined palmolein imports

February 12, 2020- India, which restricted imports of refined palm oil and palmolein in January, has exempted Nepal and has started issuing licences to import some refined palmolein from the Himalayan nation, two government officials told Reuters.

Read more ...

HIDCL, Power China to build 762MW Tamor reservoir project

Kathmandu, September 16- The Hydroelectricity Investment and Development Company Ltd (HIDCL) and state-owned Power China Corporation have jointly submitted a project development proposal at the Investment Board Nepal (IBN) to build the 762-megawatt Tamor reservoir project, which will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts.

Read more ...

Security audit of BFIs compulsory

Kathmandu, September 10- Nepal Rastra Bank (NRB) has made it mandatory for banks and financial institutions (BFIs) to conduct an audit of their information and technology (IT) system.

Read more ...

Age limit set for CEOs, directors at BFIs

KATHMANDU: Nepal Rastra Bank has set an age bar for board of directors and chief executive officers of banks and financial institutions (BFIS).

Read more ...
Symbol % Change Last Price Turnover
TPC 10.1449 532.0 1,200,368.0
NBB 10.1227 359.0 78,348,179.0
MKJC 10.0209 527.0 10,408,576.0
NIBLPF 10.0000 11.0 251,978.0
NTC 9.9914 1,277.0 164,339,250.0
Symbol % Change Last Price Turnover
VLBS -2.3669 1,650.0 11,812,950.0
SBIBD86 -2.3415 1,001.0 90,350.0
MLBBL -0.9975 1,985.0 2,583,021.0
NLG -0.9524 936.0 6,741,837.0
PBD85 -0.9288 960.0 72,000.0
Symbol % Change Last Price Turnover
MLBL 9.7333 823.0 372,688,498.0
NHPC 8.9412 463.0 304,219,800.0
API 2.7613 521.0 233,673,436.0
LBBL 1.5152 670.0 182,483,005.0
NTC 9.9914 1,277.0 164,339,250.0