One cannot be directors of BFIs, remittance companies simultaneously, says NRB

KATHMANDU: The Nepal Rastra Bank (NRB) has barred individuals from becoming board of directors of both financial institutions and remittance companies simultaneously.

Issuing a unified license on Thursday, the central bank prohibited promoters of banks and financial institutions and payment service providers from holding positions on the board of directors of remittance companies or money changers. Similarly, it has also disallowed board members of money changers/remittance companies from becoming board members of another money changers/remittance company simultaneously.

Individuals holding two positions will be required to relinquish one by September. However, the NRB has stated that the new regulation will not be applicable to individuals appointed by the government or the central bank.

In addition, the NRB has asked Nepali remittance companies to ensure that they receive a share of the remittance fees levied on individuals remitting money to Nepal. Furthermore, remittance companies have also been instructed to use checks or bank accounts while making remittance payments of Rs 100,000 or more.