KATHMANDU, December 31: The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed Nepal Rastra Bank’s (NRB) recent policy reforms aimed at easing dividend repatriation, calling the move a significant relief for foreign investors operating in Nepal.
NICCI expressed its appreciation following a series of long-standing concerns it had raised with the central bank. On May 29, a NICCI delegation met NRB Governor Dr Biswo Nath Poudel and highlighted challenges related to the repatriation of dividends and salaries of foreign employees, cross-border service payments, and the ineffective implementation of the one-window system.
Those concerns now appear to have been addressed. Earlier this week, NRB allowed the circulation of Indian currency notes of INR 200 and 500 up to a limit of INR 25,000—a step expected to ease transactions for Indian tourists. More significantly, on Monday, the central bank fully implemented the one-window system for dividend repatriation.
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“This has not only eliminated the hassle of submitting duplicate documents to both the Department of Industry and Nepal Rastra Bank, but has also practically operationalized a true one-window system for foreign investors,” said NICCI President Sunil KC.
Welcoming the reform, Saibal Ghosh, co-convenor of NICCI’s Indian Business Forum (IBF), said the new policy has effectively removed unnecessary duplication of work for both investors and government agencies. “The earlier arrangement had created avoidable delays and redundancies. This change streamlines the entire process,” he said, according to a NICCI press statement.
On behalf of Indian multinational companies operating in Nepal, Ghosh thanked NRB Governor Dr Poudel and the central bank, noting that the revised system would significantly improve efficiency. He added that the one-window mechanism at the Department of Industry would now function in a more meaningful and effective manner.
The reforms follow an amendment to the Foreign Investment and Foreign Loan Management Regulation, 2078 BS, endorsed by NRB on Monday. Under the revised provision, foreign investors are now allowed to repatriate dividends directly through the commercial banks where they hold accounts.
As per Sections 20 and 26 of the Foreign Investment and Technology Transfer Act, 2075 BS, authorized commercial banks are permitted to provide foreign exchange facilities for repatriating foreign investment and earned income.
Previously, the weak implementation of the one-window system had forced investors to submit the same documents multiple times, leading to delays and frustration. NICCI said the latest reforms mark a meaningful step toward improving Nepal’s investment climate and boosting investor confidence.
