Have you been paying higher price for a domain name to a local reseller? Did you wish you could host a website on Hostgator? Have you been paying double the price for Netflix subscription on Daraz? Those days are gone! Now you can get your own prepaid $500 dollar card from any Nepali bank.
Following the notice issued by Nepal Rastra Bank on 21st March 2021, a total of 46 class A commercial banks and development banks have started to issue prepaid dollar cards to their customers. As per the rule, a customer can obtain only one single prepaid card which could be used to make payments up to $500 in a year.
What is a Prepaid Dollar Card?
A prepaid dollar card looks is a physical debit card just like the one that you get from your bank. The difference is that you can use it to make online transactions in dollar amount. However, you can not use it to make offline POS purchases or to withdraw cash from ATMs. As per the current rule set by NRB, the account is to be maintained in USD or in any currency equivalent to the maximum limit of $500. It means, you can make international payments through this prepaid card either at once or repeatedly to the maximum limit of $500 annually with a renewal facility after a year.
What can I use the $500 prepaid dollar card in Nepal for?
You should be excited that the international payments are finally legal through the medium of prepaid dollar card obtained from your bank. The possible uses of the card could be:
To purchase Google Ads, Facebook Ads and other social media marketing
To purchase Netflix, Amazon Prime or other OTT subscriptions
Making payments for international courses in platforms like Udemy and Coursera
Purchasing and renewing domain names and hosting accounts
Purchasing items through Indian and international e-commerce platforms such as Amazon, Flipkart, Aliexpress etc.
The card can also be used to get freelancer payments from abroad. Such payments can eventually be depositted into your bank or can use used to top up your dollar card for upto $5,000 a year.
The mandatory documents needed to obtain a prepaid dollar card from Nepali commercial banks include a KYC form and a PAN card.
How do I obtain a Prepaid Dollar Card in Nepal?
According to the notice issued by the Foreign Exchange Management Department of Nepal Rastra Bank, any individual, firm or a company can get their cards issued from their bank with a maximum limit of $500 or the sum equivalent to that in any other exchangeable foreign currency. Though the processes may vary from bank to bank, NRB has stated some common requirements to be eligible for this card include a PAN number/ card and a KYC form.
Below are the steps that we advise to obtain a card:
- Visit your bank (preferably the head office) with your PAN card and fill-up the card application form and a KYC form to apply for a Prepaid Dollar Card. Depending upon the service of the bank, you may get your card ready within a couple of hours. And it might take 7 to 10 days if you want a card with your name printed on it.
- The banks may have their own rule set in order to issue a prepaid dollar card. They might charge you a certain fee to obtain the card and a yearly renewal fee.
- Once your card is ready, your account would be credited with the amount in USD at the at the forex rate of the day.
- The client must fill out a sworn statement form which would state that he or she is being issued this would be his or her only active dollar card issued by a financial institution in Nepal and and would not issue it through any other banks while this card is active.
- Similarly, they should agree to the terms and conditions of not using the card for illegitimate purpose or beyond the transaction limit of $500. Otherwise, they could be charged/ penalized as per the Foreign Exchange Act, 2019.
Which banks issue dollar prepaid card in Nepal?
Currently, the following class A commercial banks and development banks have started to issue $500 dollar prepaid debit card in Nepal:
- NMB Bank Limited
- Nabil Bank Limited
- Nepal Bank Limited
- Agricultural Development Bank
- Nepal Investment Bank
- Standard Chartered Bank
- Himalayan Bank
- Nepal SBI Bank
- Nepal Bangladesh Bank
- Everest Bank
- Kumari Bank
- Laxmi Bank
- Citizens Bank
- Prime Commercial Bank
- Sunrise Bank
- Century Bank
- Sanima Bank
- Machhapuchhre Bank
- NIC Asia Bank
- Global IME Bank
- Prabhu Bank
- Siddhartha Bank
- Bank of Kathmandu
- Civil Bank
- Nepal Credit and Commerce Bank
- Rastriya Banijya Bank
- Mega Bank
- Garima Bikas Bank
- Jyoti Bikash Bank
- Kamana Sewa Bikas Bank
- Mahalakshmi Bikas Bank
- Muktinath Bikas Bank
- Shangrila Development Bank
- Shine Resunga Development Bank
- Lumbini Bikash Bank
- Saptakoshi Development Bank
- Excel Development Bank
- Green Development Bank
- Karnali Bikas Bank
- Miteri Development Bank
- Sindhu Bikash Bank
- Tinau Mission Development Bank
- Sahara Bikash Bank
- Narayani Development Bank
- Corporate Development Bank
- Salapa Development Bank