It is possible to legally have PayPal account in Nepal and pay from cards issued by Nepali banks. Many people and organizations have legal verified PayPal account in Nepal. They work by credit, debit cards and prepaid provided by Nepali banks. Those cards are actually USD card and our focus is to tell about those cards, account and policies. We asked few banks and found that, such cards are being used by many Nepali clients and they do work for international online payment gateway like PayPal. We also saw such cards pay and users have PayPal account.
The method of creating making PayPal account in Nepal is simple. Users need to signup using their details and email. Main part is getting verified account which needs either credit or debit card and sometimes bank account. We have seen Nepal in company’s website and the current option is linking card. It requires USD card that has permission to pay internationally. It is possible to get such service in Nepal but there are some conditions. Our regular NRS cards don’t work in other multinational sites. Also on top currently there is restriction, users can’t receive money and they can only pay from their account.
NRB currently doesn’t allow such payment gateway and restricts people sending money outside easily. We searched a lot for ways for making international payment from Nepal. When we asked banks, they replied that our domestic cards can’t pay After reading services on websites of many banks we found that there are international card service that work. NRB relaxed the rules and allowed people earning in USD to spend online using cards since 2014.
Process Details and Prerequisite
Yes, people can use PayPal in Nepal with special payment instrument. International online payment can only be done using USD card from Nepal. This can be done using Master Card, Visa or Amex system (American Express). There are both debit and credit card but most banks offer credit card and prepaid for such transactions. Different banks have different rates and charges so please see their sites and ask the banks. The catch is that in order to have such card people need United States Dollar (USD) account.
Usually most banks only give international travel card to Nepali citizens based on passport and confirmed airplane ticket. Another type of card is for people holding FCY account. There are few top class banks who also give FCY or Foreign Currency Account service. This service is also listed in Nepal Rastra Bank Unified Circular 2074.
Our current article is totally based on NRB Unified Circular of 2074. This also accounts for current rules and policies of banks. Mostly A and B class banks are providing these service so do ask your nearest branch, head office or card department if necessary.
Rules and Process
The rules of NRB strictly only allows citizens, organizations and offices who have regular earning in foreign currency to get FCY account. Different banks have different foreign currency account. Mostly they have USD account which is what most people need. There are lots of rules, criteria and conditions for each type of scenario, people and organizations. For in-depth please read the NRB 2074 Unified Circular.
Simply the rules allow anyone who has legitimate proof of earning in foreign currency to open an account. This includes people residing here and working for company in abroad. Foreign companies who work in Nepal and pay in USD or foreign currency. People with salary certificate and slip can easily apply for such service. For freelancers and other earners it is challenging because banks ask for agreement between employer and employee.
Please be clear that people with no such earning can’t apply for such account. Only people with legal proof of source can get the service from selected banks. People can’t simply convert their Nepali to Dollar and deposit in bank. Most banks ask for money to be sent from Wire, EFT and other banking methods. But NRB circular states people can deposit cash if they provide proof of source and income.
Payments and Scenario
USD or FCY are not very common in Nepal. We saw that even the bank staffs are not aware of such service and specially with the NRB rules. This article is actually meant to illuminate on the fact that there is actually such service. We were told that organizations like Tours and Travel with such income are using the international account and card.
The USD credit and debit cards can pay in sites like GoDaddy, Google, Amazon, Facebook, Netflix etc. As far as the rules and policies state, there is way of having such service. Nepali citizens can clearly have verified PayPal account legally from Nepal.
We might have gone a bit off track while explaining simple thing but due to complication and rules, we had to cover all of these things. Finally we want to conclude by saying that, all you need is FCY account to have PayPal account legally in Nepal. If you have any experience and suggestion do share with us. This service was confirmed by four A class banks to us. We are still waiting for our central bank to open channel for all normal account holders to pay internationally.