Nepal - Country Commercial Guide
Trade Financing
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Methods of Payment

The only readily available method of financing trade transactions in Nepal is a letter of credit, an instrument made available by most commercial banks.  Although the Government of Nepal had initiated efforts to establish an export-import bank several years ago, such a bank has not yet materialized.  An Infrastructure Bank—to help finance large infrastructure projects—came into operation in March 2019. 

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at

Banking System

The Nepal Rastra (Central) Bank regulates the national banking system and functions as the government’s central bank.  As a regulator, the NRB controls foreign exchange; supervises, monitors, and governs operations of banking and non-banking financial institutions; determines interest rates for commercial loans and deposits; and determines exchange rates of foreign currencies.  As the government’s bank, it maintains all government income and expenditure accounts, issues Nepali bills and treasury notes, makes loans to the government, and determines monetary policy.

Commercial lending in Nepal is governed under the Bank and Financial Institutions Act (BAFIA) of 2017.  The BAFIA authorizes the NRB to issue guidelines to all commercial banks and financial institutions on interest rates, interest ceilings, and areas of investment.

Three large state-owned banks still dominate the commercial banking sector:  Rastriya Banijya Bank (National Commercial Bank), which is 100 percent government owned, Nepal Bank Ltd., which is 40.5 percent government-owned, and the Agricultural Development Bank, also largely government-owned.  Together these 3 state-owned banks hold nearly 16% of total banking assets and deposits in the country.  The first two, in particular, hold large portfolios of non-performing loans.  Private banks have an increasingly large and influential presence, and most businesses now tend to bank with non-state-owned banks.

In the 1980s, Nepal opened the commercial banking sector to foreign participation.  Since then, several joint venture banks have been established including Nabil Bank; Nepal Investment Bank; Standard Chartered Bank; State Bank of India; Bank of Kathmandu; Everest Bank; Nepal Sri Lanka Merchant Bank; Nepal Bangladesh Bank; and Nepal Bank of Ceylon, now called Nepal Credit and Commerce Bank.  As of July 2020, there were 27 commercial banks in operation, including foreign joint-venture banks, 20 development banks, and 22 finance companies.

Existing banking laws do not allow branch operation by any foreign banks.  All commercial banks have correspondent banking arrangements with foreign commercial banks, which they use for transfers and payments.

In 1994, the government expanded the role of the Nepal Stock Exchange by allowing private brokers to operate.  In 1996, the Government of Nepal announced that it would permit foreign institutional investors to hold up to 25 percent of the shares of listed firms in certain sectors, such as tourism and power.

Foreign Exchange Controls

The Nepali rupee is convertible for all current account transactions.  Investors have complained, however, that the approval process for converting Nepali rupees is cumbersome.  Earners of foreign exchange are permitted to retain 100 percent of their earnings and to open a foreign exchange account in Nepal to hold them.  However, NRB approval is required for payments to any person living outside of Nepal.  The NRB’s approval is also required to draw, accept, or negotiate any bills of exchange, promissory notes, or loans, if the payee is living outside Nepal.

Provisions exist for foreign investors who have received permission to invest in convertible currency to repatriate the proceeds from the sale of that investment, the profits or dividends from that investment, and the principal and interest paid on any foreign loans.

U.S. Banks & Local Correspondent Banks

There are no U.S. bank branches operating in Nepal.  The following banks have correspondent banking arrangements with U.S. banks:


Nepal Bank Limited

Mr. Krishna Bahadur Adhikari

Chief Executive Officer Nepal Bank Bldg.

Dharma Path

Kathmandu, Nepal

Tel:  977-1-4247999

Fax:  977-1- 4220414



Rastriya Banijya Bank

Mr. Kiran Kumar Shrestha

Chief Executive Officer

GPO Box: 8368

Singhadurbar Plaza, Kathmandu, Nepal

Tel:  977-1-425-2595

Fax:  977-1-422-5302; 425-2931




NABIL Bank Limited

Mr. Anil Shah

Chief Executive Officer

P.O. Box: 3729

Nabil House, Kamaladi, Kathmandu, Nepal

Tel:  4430425, 4429546-47, 4435380-85

Fax:  4429548

Telex:  2385 NABIL NP, 2431 NABIL NP





Standard Chartered Bank Nepal Limited

Anirvan Ghosh Dastider

Chief Executive Officer

PO Box 3990

Naya Banashwor, Kathmandu, Nepal

Tel: 977-1-4782333, 4783304

Fax: 977-1-4780314



Nepal Investment Bank Ltd. (NIBL)

Mr. Jyoti Prakash Pandey

Chief Executive Officer

P.O. Box: 3412

Durbar Marg, Kathmandu, Nepal

Tel:  977-1- 4228229, 4228231

Fax:  977-1-4226349, 4228927



Nepal SBI Bank Limited

Mr. Anukool Bhatnagar

Managing Director

Durbar Marg, Kathmandu, Nepal

Tel:  977-1-4435516, 4435613

Fax:  977-1-4435612





Nepal-Bangladesh Bank Ltd.

Mr. Gyanendra Prasad Dhungana

Chief Executive Officer

Bijuli Bazar, New Baneshwor

P O. Box 9062

Kathmandu, Nepal

Tel:  977-1-4783972/4783975/4783976

Fax:  977-1-4780826/4780106/4780509




Bank of Kathmandu Ltd.

Mr. Shovan Dev Pant

Chief Executive Officer

Kamal Pokhari, Kathmandu, Nepal

Tel:  977-1-4418068, 4414541

Fax:  977-1-4418990


Telex:  2820 BOK NP




Everest Bank Limited

Mr. Gajendar Kumar Negi

Chief Executive Officer

EBL House, Lazimpat

P.O. Box 13384

Kathmandu, Nepal

Tel:  977-1-4443863, 4443864, 4443377

Fax:  977-1-4443160