Digital payment systems like Payment System Providers (PSPs) and Payment System Operators (PSOs) can now receive foreign direct investment (FDI) in Nepal.
On Thursday, Nepal Rastra Bank issued a Licensing Policy for Digital Payment Systems through the Payment Systems Department.
The document includes a set of rules and guidelines policies for the payment system companies along with their licensing requirements.
We have listed the major highlights for your convenience:
#Increase in Paid-up Capital Requirement
The paid-up capital requirement for PSPs and PSOs has been increased by the NRB.
|Type of the Company||Specifications||Minimum Paid-up Capital Requirement|
|Payment Systems Provider (PSP)||Offering digital payment services without cards related services||Rs 5 Crore|
|PSP||Offering digital payment services with cards related services||Rs 25 Crore|
|Payment System Operator (PSO)||–||Rs 40 Crore|
Meanwhile, the payment systems operator from Nepal with their extended services in other countries will need to maintain the paid-up capital of Rs 80 crores.
The existing companies should maintain this capital requirement by the end of Ashadh, 2085.
#New license for payment systems
The issuance of licenses for new payment systems has now resumed after 2 years. Any payment company that has complied with all the requirements for registration as a payment service company can apply for the license to NRB.
For that, NRB has made a mandatory requirement of a non-refundable application fee of Rs. 1,00,000 for payment service providers and Rs. 5,00,000 for payment service operators.
#Merger and Acquisition
The payment systems can go into merger and acquisition in the case of requirement. Necessary regulations will be made sooner for that.
PSPs and PSOs can now get FDI investment not exceeding 15% of their paid-up capital.
Also, the accounting, investment process, and repatriation of earnings should be made according to the Foreign Exchange Act 2019.
These are the major requirements for licensing the PSPs and PSOs in Nepal as prescribed by the Central Bank.