NRB Extends Deadline for Remittance Firms’ Paid-Up Capital by Two Years

Kathmandu. Nepal Rastra Bank has extended the deadline for remittance (money transfer) companies to meet the minimum paid-up capital requirement by two years. The provision has been introduced through the second amendment to the “Remittance Regulation, 2079,” providing relief to companies currently under pressure to raise capital.Under the new arrangement, remittance companies are now required to maintain a minimum paid-up capital of NPR 100 million by the end of Ashad 2087. Previously, the deadline for meeting this requirement was set for the end of Ashad 2085. The extension is expected to ease financial pressure, particularly for small and mid-sized companies, allowing them more time for capital management and business expansion.Earlier, the central bank had mandated a phased capital increase plan. Companies were required to raise NPR 30 million by 2081, NPR 40 million by 2082, NPR 60 million by 2083, NPR 80 million by 2084, and NPR 100 million by 2085. However, the new amendment removes these annual milestones and introduces a single deadline of 2087 to meet the full capital requirement.The amendment also aims to further organize and regulate the remittance sector. It clearly outlines provisions related to licensing, renewal, suspension, and cancellation, as well as penalties and compliance measures. In addition, procedures for mergers, acquisitions, and consolidation of remittance companies have been clarified.As per the revised rules, remittance companies can, with prior approval from NRB, operate payment service provider or payment system operator businesses through subsidiary companies. They are also allowed to issue remittance cards and carry out other activities as specified by the central bank. Banks and financial institutions have also been permitted to engage in remittance transactions.Regarding licensing requirements, companies intending to operate remittance services must maintain a minimum paid-up capital of NPR 250 million, while other related companies must maintain at least NPR 100 million. For license renewal, companies must apply within 30 days of expiry. Late applications will be accepted with an additional penalty equivalent to the renewal fee.Furthermore, before canceling any company’s license, NRB must publish a 35-day public notice in a national daily newspaper and on its official website. The cost of such notice will be borne by the concerned company.NRB’s decision is expected to strengthen the remittance sector while providing flexibility for sustainable growth and improved regulatory compliance.