CAN Federation welcomes NRB directive to expand foreign currency access for ICT sector

KATHMANDU: Federation of Computer Association Nepal (CAN Federation) has welcomed Nepal Rastra Bank’s new circular expanding access to foreign currency for the country’s information and communication technology (ICT) sector.

The central bank has authorised Class A and national-level Class B banks to issue IT prepaid cards for the purchase of IT, communication, and information broadcasting services, with an annual limit of $3,000. Exporting IT entities may qualify for an elevated annual limit of $5,000.

Larger IT companies with significant foreign earnings can pay up to $100,000 annually for online software and infrastructure, while individual freelancers earning foreign income are permitted up to $25,000, the central bank said.

The circular also allows borrowers to convert foreign currency loans into Nepali rupees without extending the repayment period, and it simplifies visa security deposits by permitting banks to issue electronic cards for those requirements.

Industry groups said the measures correct restrictive foreign exchange rules that had constrained access to cloud services, enterprise software and other essential digital tools. For years, the previous $500 limit on standard dollar cards had forced many businesses and developers to rely on informal payment channels.

“This is a timely reform that empowers the entire ICT ecosystem,” said Chiranjibi Adhikari, Senior Vice President of CAN Federation and Founder President of the Information Security Response Team Nepal (npCERT) and the Center for Cybersecurity Research and Innovation (CSRI Nepal). “We appreciate the steps taken by NRB to ease foreign payment constraints and support the growth of the IT industry. Progress happens when institutions like the CAN Federation, the CSRI Nepal, and the npCERT are heard. These measures are a significant enabler for seamless access to global digital tools and will drastically reduce operational friction for our startups.”

Adhikari said the policy change followed sustained engagement by CAN and allied organisations, including ISPAN, NAS IT and CSRI, and he said the move recognised the IT sector’s role in Nepal’s economic future.

Analysts and sector representatives said the directive could narrow the global competitiveness gap by enabling Nepali developers to access high-tier enterprise tools, reduce reliance on informal payment channels by bringing transactions into the formal banking system, and boost IT exports by lowering the cost of doing business for offshore software development and service providers.

To take advantage of the new facilities, the CAN Federation has advised IT professionals and businesses to update their KYC records with banks, maintain clear documentation of foreign currency earnings to qualify for higher limits, and obtain a Permanent Account Number (PAN) for any foreign currency demand exceeding $5,000.

The CAN Federation, an umbrella body representing IT professionals, vendors and internet service providers, and cybersecurity organisations CSRI Nepal and npCERT were cited in the circular and in industry statements as key participants in discussions that led to the reforms.

Industry leaders said the $3,000 limit is a significant step but that further measures — including integration of international payment gateways and higher limits for research-intensive startups — remain on their agenda.