Is prepaid dollar card the way to go?
NRB has controlled the bubble economy for long time.
They disallowed individuals to freely buy from any international vendor. But now NRB has finally decided to let it go.
The new regulation from NRB now allows any Nepali national to make a Prepaid Dollar Card. This card can be used to buy from International Merchants and Vendors at any time.
It’s a very subtle move but an important one as well. This is, of course, the solution to a large extent of problems that most people faced. Prepaid Dollar Card is one step towards economical and digital freedom for individuals.
This will hugely increase the odds of the development of new ideas and innovations along with the import of goods. This will also allow Nepali to access the services that we may not have produced or offered in Nepal locally.
However, here are few things you should know about prepaid dollar cards before you go ahead and obtain yours.
1) A cardholder can deposit a maximum of $500 per year for international payment. If you are thinking to buy a private island in Panama, you better hold your horses for now.
2) The proposed mechanism allows individuals to issue a dollar card according to the Forex regulation through any bank where the cardholder has an account.
3)Purchase of items marked as illegal are prohibited for transactions.
4) Individuals are not allowed to make multiple cards from multiple Banks.
5) Streamlining to the ongoing regulations, KYC and PAN are needed to apply for the Prepaid card.
6) The regulation also allows individuals to top up more than 500$ provided that the individuals also make an income of foreign currency at least twice as much as 500$.
Does introducing prepaid dollar cards have any demerits in Nepal?
The Limit on the amount is really nominal. The Regulation mostly appears to benefit users who want to purchase Netflix, Spotify, or domain. However, no users can invest in the New York stock exchange or in any company because of the threshold. But there is also a little hope that NRB has seen the potential of foreign income through investment into international opportunities. (Fingers Crossed)
However, introduction of the prepaid dollar card is obviously going to change the lives of people for better as it breaks the barrier of international payment gateway that has existed since forever in Nepal.
But on the other hand, introduction of prepaid dollar card could cause the small local e-commerce and retailers to get overshadowed. Since it opens the door to tons of other options for consumers and also it makes the giants themselves accessible. Also, it is highly likely that it could instill sense of competition amidst the local businesses urging them to deliver quality products to the consumers to make sure their businesses do not crumble to the rubles or go down the drain. So, at this point, we can ascertain the fact that the introduction of prepaid dollar in Nepal does more good than bad.