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. 

Banking System

The Nepal Rastra (Central) Bank (NRB) 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 three state-owned banks hold nearly 16 percent of total banking assets and deposits in the country. The first two 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 September 2023, 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. The NRB updated its investment regulations in December 2025, enabling investors to work directly with commercial banks for FDI inflows and repatriation of funds such as profits and franchise/royalty fees, effectively bypassing the previous requirement for central bank approval. 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. NRB approval is required for payments to any person living outside of Nepal. However, The NRB has simplified the procedures for service payments made outside Nepal. For smaller payments involving routine current account items—such as software fees or service charges, commercial banks can now provide direct access to foreign exchange without requiring individual regulatory approvals.  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.

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
Tilak Raj Pandeya
Chief Executive Officer 
Nepal Bank Bldg.
Dharma Path
Kathmandu, Nepal
Tel:  +977-1- 5971222
mail:  info@nepalbank.com.np

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; +977-1-425-2931
Email:  intlbkng@rbb.com.np

NABIL Bank Limited
Manoj Kumar Gyawali
Chief Executive Officer
P.O. Box: 3729
Nabil House, Kamaladi, Kathmandu, Nepal
Tel:  +977-1-443-0425, +977-1-442-9546, +977-1-443-5380
Fax:  +977-1-4429548
Telex:  2385 NABIL NP, 2431 NABIL NP 
SWIFT:  NARBNPKA
E-mail:  nabil@nabilbank.com.np

Standard Chartered Bank Nepal Limited
Gorakh Shumsher Rana
Chief Executive Officer
PO Box 3990
Naya Banashwor, Kathmandu, Nepal
Tel: 977-1-478-2333, 478-3304
Fax: 977-1-478-0314

Nepal Investment Mega Bank (NIMB)
Mr. Jyoti Prakash Pandey
Chief Executive Officer
P.O. Box: 3412
Durbar Marg, Kathmandu, Nepal
Tel:   977-15342530, 977-1-5328229Fax:  977-1-422-6349, +977-1-422-8927
E-mail: info@nimb.com.np

Nepal SBI Bank Limited
Ram Kumar Tiwari 
Chief Executive Officer 
Durbar Marg, Kathmandu, Nepal
Tel: 977-1-4544303, 4543509
Fax: 977-1-4544303
Email: durbarmarg@nsbl.com.np

Everest Bank Limited
Mr. Sudesh Khaling
Chief Executive Officer
EBL House, Lazimpat
P.O. Box 13384
Kathmandu, Nepal
Tel:   977-1-4543377
Fax:   977-1-4543160
Email: eblinfo@ebl.com.np