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Nepal Imposes e-Payment Limit for Citizens in India

© AP Photo / Altaf QadriAn Indian man uses his mobile phone in New Delhi, India. (File)
An Indian man uses his mobile phone in New Delhi, India. (File) - Sputnik International
Nepal’s Central Bank has set a limit on the payments that a Nepali national can make in India through debit and credit cards issued in Nepal. According to a Nepal Rashtra Bank spokesperson, the main objective of the central bank is to control capital flight.

New Delhi (Sputnik): Nepal's central bank, Nepal Rashtra Bank (NRDB), has set a limit of Indian Rupees 100,000 ($ 1,423) per month while making payments for goods and services in India using debit, credit, and other prepaid cards.

READ MORE: Nepal Bans Indian Currency of Higher Denominations

"The step is mainly aimed at curbing expenditure on unproductive purchases in India as Nepal's foreign currency reserves are strained", NRB Spokesperson Narayan Prasad Paudel told Sputnik.

A school student holds a Nepalese and Indian flag and wears a badge with a portrait of Indian Prime Minister Narendra Modi as he waits to welcome Modi in Kathmandu, Nepal, Friday, May 11, 2018 - Sputnik International
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However, payments to hotels, hospitals, and pharmacies have been exempted from this limit.

Recently, Nepal banned the use of Indian currency notes of denominations 200, 500 and 2,000 in the country. The Indian currency is widely used in Nepal.

READ MORE: Nepal Appoints Ambassador to India After One Year Hiatus

Nepal's current foreign exchange reserves stand at Nepalese Rs 1,082.91 billion, of which the share of Indian currency in the total foreign exchange reserves comprises 24 percent. Nepal uses Indian currency also to maintain its foreign reserves.

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