NRB Tightens Reporting Rules for Remittance Companies
Nepal Rastra Bank has mandated remittance companies to report daily transactions within three days and monthly reports within seven days, effective mid-October. The move aims to enhance oversight and standardize reporting through the FXOL system.
KATHMANDU, Oct 7 – Nepal Rastra Bank (NRB) has tightened reporting requirements for remittance companies and financial institutions involved in the remittance business, mandating them to submit details of daily remittance transactions to the central bank within three days of the transaction.
The Non-Bank Financial Institution Supervision Department under the NRB issued a circular to concerned organizations, revising reporting forms and deadlines in accordance with Regulation 33 (including the second amendment) of the Remittance Regulations, 2022. The new arrangement will come into effect from mid-October.
By tightening the rules, the NRB is implementing a new reporting system to further streamline the submission of transaction details. In addition to daily transactions, companies must submit monthly reports within seven days of the month-end.
Under the new system, remittance companies are required to submit monthly reports regarding payments for inward remittances—whether processed directly or through sub-agents and sub-representatives. These details must be submitted to the NRB via the FXOL reporting system within seven days of the end of each Nepali month.
Similarly, details regarding any actions taken against sub-agents and sub-representatives must also be submitted within the stipulated time. This measure ensures that information concerning the status of agents and representatives involved in remittance transactions comes under the NRB's regular oversight.
The NRB has also issued a similar deadline for submitting monthly reports on inward remittance transactions categorized by country. According to an NRB official, a new reporting platform has been introduced to maintain a standardized format for submitting details.
In addition, the central bank has made it mandatory for remittance companies to submit additional information regarding their financial and foreign partners. Companies are required to submit monthly details concerning balances held with foreign partners and information related to 'Fedan' rates, the uniform remittance exchange rates determined by the Foreign Exchange and Dealers Association of Nepal (Fedan).
Likewise, the concerned companies must notify the NRB if there is any change in their board of directors. Remittance companies must submit provisional financial statements on a quarterly and annual basis within 15 days of the end of the respective periods.