The government has proposed introducing a new law to deal with online payment platforms in Nepal and all the economic transactions based on the internet.
The new law will regulate various forms of digital money and digital wallets including online payment platforms in Nepal like Khalti and eSewa.
For that, the government is preparing to scrap article 103 of the existing Nepal Rastra Bank Act.
Article 103, Nepal Rastra Bank Act 2002
Formation of ‘National Payment Board’
Meanwhile, the new law draft has proposed formulating a National Payment Board under the leadership of the Nepal Rastra Bank governor. The Board will be authorized to introduce and implement laws required in the sector.
Independent service providers have to get permission from the central bank to launch such services. Banks and financial institutions which are already recognized by the central bank, however, can provide these services without obtaining any permits.
The central bank has to fix an amount of the paid-up capital to begin the service.
The bill has already been registered at the Parliament Secretariat to officially begin the new law formation process.
This move holds significance, especially at a time when the government has already decided to implement the Electronic Payment System in the payment of its expenditures and collection of revenue. The government in its latest budget has also announced to run a special campaign to open a bank account of all Nepalis within a year.
Online Payment Platforms in Nepal
With the advancement in technology and ever-growing reach in them by general people, the online payment system is growing rapidly in Nepal. Digital wallets like Khalti, and mobile and internet banking facilities are especially popular among the general masses.
These online payment platforms enable one to transfer funds, recharge mobile phones, pay electricity and Khanepani bills, make internet and DTH bill payments, pay at online shopping sites, book bus tickets, airline tickets, movie tickets, and hotel rooms in just a couple of minutes through mobile apps and websites.
