1. A person, firm, company, or body who intends to carry on the foreign exchange transaction shall obtain a license from Nepal Rastra Bank.
2. A person, firm, company or body who intends to carry on the foreign exchange transaction shall make an application along with necessary details specified by the Nepal Rastra Bank.
3. Nepal Rastra Bank may, from time to time, give necessary order or directive to the licensee in relation to the regularization and management of the foreign exchange transaction.
4. The licensee bank shall pay annual fees and deposits as prescribed by Nepal Rastra Bank. The license of those licensed banks shall be canceled or terminated if they fail to maintain a deposit and pay annual fees.
5. If a licensee fails to abide by the order or directive issued by Nepal Rastra Bank, the bank may take any or all of the following actions, such licensee,
- To admonish
- To impose restrictions on any or all the foreign exchange transaction
- To forfeit cash deposit maintained in the bank
- To suspend or cancel the license
6. No person, without obtaining permission from Nepal Rastra Bank, shall carry on the foreign exchange transaction with any person other than the licensee.
7. No licensee or any other person shall carry on foreign exchange transactions at a rate different than the exchange rate specified by Nepal Rastra Bank.
8. If any person obtains the foreign exchange for any specific purpose or on any terms, that person shall not use such a foreign currency any other purpose or violate such terms.
9. The exporter shall not do any of the following act:
- To receive payment for the exported goods through other modes except as prescribed
- To delay the payment for exported goods than the period prescribed
- To do any act in order not to receive payment for the total value of the exported goods
- To conceal real invoice
10. Restriction on making or receiving payment: No person residing in Nepal shall do or cause to be done any of the following acts directly or indirectly
- To make payment of any kind in any manner to any person residing outside Nepal
- To transfer right to receive payment in favor of any person residing outside Nepal by drawing, accepting or negotiating any negotiable instrument or accepting any loans
11. The foreign exchange regulation department (Investigation Officer) shall search a person, vehicle, or entire building and premises or place of the transaction if there are adequate reasons and ground to doubt that any person has any foreign exchange or conducted currency trafficking.
12. The investigation officer shall arrest a suspicious person ay any place if there are adequate read and ground to doubt that any person has done any act related to a foreign exchange transaction.
13. The government of Nepal has the power to give a specific directive to Nepal Rastra Bank from time to time and the bank shall abide by such directives for the performance of activities.
14. Any citizen of Nepal residing in Nepal or any company or firm registered in Nepal shall obtain permission from Nepal Rastra Bank to open an account with a bank in a foreign country.
15. If any person is accused of involvement in foreign exchange transactions without obtaining permission from Nepal Rasta Bank, such foreign exchange transactions shall be forfeited and such person shall be fined to three-fold of such amount in question.
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