NRB helps telecoms` subsidiaries to offer online payments to clients

Nepal Telecom and Ncell can now establish firms like e-Sewa, Hello Paisa and iPay that provide online and mobile payment services. This move, according to NRB, is expected to benefit rural population that are deprived of payment services, thehimalayantimes.com reports. To provide such services, companies must acquire licence from NRB and maintain minimum paid-up capital of USD 0.14 million, according to the Licensing Policy for Payment Service Providers and System Operators just introduced by NRB.

With the introduction of the licensing policy, NRB will now officially function as oversight agency for such companies and monitor and regulate their businesses. The licensing policy says all payment service providers, including domestic money transfer companies and firms like e-Sewa, and payment system operators, such as clearing houses and companies, like VISA, MasterCard and SCT, must obtain licence from NRB if they want to continue operating their businesses.

However, special provisions have been created for foreign companies providing payment services or operating payment systems in 10 or more countries. These facilities include waiver on the need to maintain minimum paid-up capital and park one per cent of the paid-up capital as security deposit at NRB. The licensing policy has made it mandatory for all firms providing payment services and operating payment systems to deposit one per cent of the paid-up capital in security deposit account of NRB.

For instance, minimum regulatory paid-up capital for firms providing payment services through electronic cards has been fixed at USD 0.74 million. If firms are issuing electronic cards that can be used abroad for payment purpose, then such companies must maintain minimum regulatory paid-up capital of USD 3.72 million, says the policy, adding, foreign firms providing payment services in Nepal must maintain a minimum paid-up capital of USD 4.46 million. Minimum paid-up capital for payment system operator, such as SCT or Nepal Clearing House Ltd, on the other hand, has been fixed at USD 1.48 million.