Banking Khabar / Nepal Rastra Bank (NRB) has made it easier for companies to bring foreign investment into Nepal and to send investment-related funds abroad. Under the new policy, companies no longer need prior approval from the central bank for these transactions.
This change has been introduced through the fifth amendment to the Foreign Investment and Foreign Loan Management Regulation, 2078 (2021). One of the major highlights of the amendment is that even companies currently on NRB’s blacklist are now allowed to bring foreign investment into the country.
Earlier, blacklisted companies were completely barred from receiving foreign investment. However, under the new rule, such companies can bring in foreign funds but will not be allowed to take profits, dividends, or other returns abroad unless they are removed from the blacklist.
The amendment also removes the requirement for NRB’s prior approval when foreign investment is involved in changes to share ownership. This step is aimed at making Nepal more attractive to foreign investors by reducing paperwork and delays.
According to NRB, foreign investors can now easily repatriate money earned legally in Nepal. This includes money from selling shares, profits or dividends, remaining funds after a company or industry is closed, royalties from technology transfer agreements, lease payments, and other approved earnings.
The central bank believes these changes will make the investment process simpler, faster, and more transparent, helping to improve Nepal’s overall investment environment.
