Nepal Rastra Bank Updates e-Payment Transaction Limits

Since 2076 BS, Nepal Rastra Bank has issued annual directives on payment systems to promote electronic payments across the country. According to its latest integrated directive on payment systems, NRB has set new transaction limits for electronic payment services nationwide. Let’s dive in!

Nepal Rastra Bank Transaction Limits Overview

Daily transaction limits

According to the latest notice released by NRB, those who use Mobile banking applications, including Connect IPS and QR Code payments, will be allowed to transact up to Rs. 300,000 per day with no monthly limit. Likewise, web-based platforms like internet banking and Connect IPS permit transactions up to Rs. 2 million daily, with no monthly restrictions.

Meanwhile, digital wallet users can transfer up to Rs. 200,000 daily from bank accounts to wallets, with a monthly cap of Rs. 1 million. The same limits apply to wallet-to-bank transfers. The central bank restricts wallet-to-wallet transfers to Rs. 50,000 per day and Rs. 500,000 monthly.

Exemptions from Limits

The directive also exempts payments to the government, including taxes, duties, fines, and vehicle registration fees, from standard transaction limits. Other items, such as utility bills for water and electricity, telecommunication charges, social security contributions, school fees, and insurance premiums, also fall outside the normal restrictions.

The directive exempts certain transfers from limits. Users face no restrictions when transferring money from their wallet to their linked bank account. Similarly, transfers between accounts in the same person’s name at the same bank or financial institution are unlimited.

The USSD system, which doesn’t require a smartphone, allows users to transact Rs. 5,000 per transaction with a daily maximum of Rs. 10,000. The central bank limits contactless payments using NFC technology to Rs. 5,000 per transaction.

The central bank has now eliminated transaction limits on debit, credit, and prepaid cards for point-of-sale and e-commerce purchases. It has also mandated that financial institutions cannot charge customers any fees for domestic payments made via cards, digital wallets, or mobile banking apps. Users can also retrieve forgotten passwords or PINs without paying any charge.

Business and Large-Value Payments

Commercial enterprises can access specialised payment services like Corporate Pay, which offers customised transaction limits for payroll and vendor payments. Businesses must apply through their banks or financial institutions.

The Real Time Gross Settlement (RTGS) system processes transactions of Rs. 200,000 and above instantly. It operates Sunday through Thursday from 8:30 AM to 7:30 PM and Friday from 8:30 AM to 2:45 PM. An alternative Inter-bank Payment System (IPS) handles large-value payments non-real-time.