The remittance bye-laws, 2079 (second amendment) have made a new provision that the remittance companies should have a minimum paid-up capital of Rs 100 million by Ashad end, 2087 BS. Earlier, they are requried to meet the minimum paid-up capital by Ashad end, 2085 BS.
Previously, the NRB had directed the capital to be increased in a phased manner. As per the provision, the companies had to raise their paid-up capital to Rs 30 million by 2081, Rs 40 million by 2082, Rs 60 million by 2083, Rs 80 million by 2084 and Rs 100 million by 2085. However, after the new amendment, the companies can directly increase the capital to 100 million by 2087.
NRB has also made arrangements to make remittance transactions more systematic. The amendment bill clarifies the process of granting, renewing, suspending and scrapping the license for remittance transactions as well as penalties and procedures for merger and acquisition of companies.
As per the new provision, remittance companies can operate as payment service providers or payment system operators through their subsidiaries after obtaining permission from NRB. In addition, they will also be able to do business by issuing remittance cards and carry out other tasks as specified by NRB. NRB also alloweds anks and financial institutions to carry out remittance transactions.
The remittance company should maintain a minimum paid-up capital of Rs 250 million while others should have a minimum paid-up capital of Rs 100 million in order to obtain a license.
