Kathmandu – Nepal Rastra Bank (NRB) has issued a clear and firm directive: casinos and similar institutions must now obtain a license before dealing in any kind of foreign currency – including Indian Rupees.
This move comes as part of a stricter enforcement of the Foreign Exchange (Regulation) Act, 2019.
In a public notice released on Friday, NRB’s Foreign Exchange Management Department announced that unlicensed entities are no longer allowed to operate in the foreign exchange market. This includes both buying and selling of foreign currencies a common practice in casinos that cater to international tourists.
Why the sudden crackdown?
The central bank reminded all concerned parties that Section 3 of the Act requires a license to conduct foreign exchange transactions. To regulate this, NRB has already introduced several rules and inspection mechanisms under the Foreign Exchange License and Supervision Regulations, 2020, with Chapter 4, specifically laying out provisions for casinos.
What does this mean in practice?
Casinos must apply for and obtain a license to deal in foreign currencies.
Unlicensed foreign exchange transactions could lead to legal action.
The move is aimed at curbing illegal forex trading and bringing more transparency into the system.
This directive was issued under Section 12 of the Act, which grants the central bank the authority to regulate and control foreign currency dealings in the country.
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