NICCI welcomes NRB's move to allow direct repatriation of dividends

KATHMANDU: Nepal‑India Chamber of Commerce and Industry (NICCI) has welcomed Nepal Rastra Bank’s recent measures to simplify the repatriation of dividends and other foreign exchange procedures for investors.

The chamber said an amendment to the Foreign Investment and Foreign Loan Management Regulation, 2078, now allows foreign investors to repatriate dividends directly through the commercial bank where they hold an account. The change, issued on Monday, cites Sections 20 and 26 of the Foreign Investment and Technology Transfer Act, 2075, and authorises commercial banks to provide foreign exchange facilities for repatriating foreign investment and earned income.

NICCI recalled that it raised related concerns with NRB Governor Dr Biswo Nath Poudel during a meeting on May 29, drawing attention to problems around repatriation of salaries for foreign employees, cross‑border service payments and the effective implementation of the one‑window system.

The chamber also noted two other recent central bank moves: permission for the circulation of Indian currency notes of INR 200 and INR 500 up to a limit of INR 25,000 to ease transactions for tourists, and the full implementation of the one‑window system.

"This has not only removed the hassle of duplication of documents to both the Department of Industry and NRB for dividend repatriation, but has also practically implemented a true one‑window system for foreign investors,’ said NICCI President Sunil KC.

Co‑Convenor of NICCI’s Indian Business Forum, Saibal Ghosh, welcomed the policy changes and said they ‘effectively eliminated the duplication of work that had been created for both investors and the Government of Nepal." He thanked NRB Governor Poudel and the central bank on behalf of Indian multinational companies operating in Nepal, adding that the new process would make procedures more efficient and that the Department of Industry’s one‑window system ‘will be more effective and efficient.’

Previously, NICCI said, ineffective implementation of the one‑window system had forced investors to submit the same documents multiple times, creating delays and an extra administrative burden. The recent regulatory amendment and operational changes aim to streamline those processes and reduce duplication.