How To Open A Foreign Currency Account in Nepal

Foreign currency account in Nepal: An account where we deposit, withdraw, or transaction rather than Nepalese rupees is known as (FCY) foreign currency account.

The banks are permitted by Nepal Rastra bank to open foreign currency accounts like Dollar, Euro, Canadian, Australian, Pound sterling, Japanese yen, and many more other currencies accounts on customer demand.

You can open a savings account as well as a fixed deposit account under FCY to these banks. The interest rate is also given below by banks on the FCY account. The given values are mention in percentages.

Banks	USD	EURO	GBP
Nepal Bank Ltd. (NBL)	2		0.4
Agriculture Development Bank Ltd. (ADBNL)	0.8	0.6	0.6
NIC ASIA Bank Ltd. (NIC)	2.6	1	1
Rastriya Banijya Bank Ltd. (RBB)	1.5	0.75	0.75
Himalayan Bank Ltd. (HBL)	1	0.25	0.25
Nepal Bangaladesh Bank Ltd. (NBB)	1	0.5	0.5
Machhapuchhre Bank Ltd. (MBL)	2	1	1
Nepal SBI Bank Ltd. (NSBI)	1
Prabhu Bank Ltd. (PRABHU)	1.5	1	AUD,JPY:1
Nabil Bank Ltd. (NABIL)	0.75
Mega Bank Nepal Ltd. (Mega)	0.5	0.5	0.5
Nepal Investment Bank Ltd. (NIBL)	0.75	0.15	0.15
Everest Bank Ltd. (EBL)	0.5	0.25	0.5
Global IME Bank Ltd. (Global)	2	0.75	0.75
Bank of Kathmandu Lumbini Ltd. (BOK)	1.25
Nepal Credit and Commerce Bank Ltd. (NCC)	3
Kumari Bank Ltd. (Kumari)	1.75
Sanima Bank Ltd. (Sanima)	2.25	1	1
Laxmi Bank Ltd. (Laxmi)	3
Sunrise Bank Ltd. (Sunrise)	2	1	1
NMB Bank Ltd. (NMB)	2	0.25	AUD,CAD:1
Siddhartha Bank Ltd. (SBL)	2	0.5	0.5
Citizens Bank International Ltd. (Citizens)	1.5	1	1
Prime Commercial Bank Ltd. (Prime)	2	0.75	0.75
Civil Bank Ltd. (Civil)	2.5	2	2
Century Commercial Bank Ltd. (Century)	2.85	1	1
Standard Chartered Bank Nepal Ltd. (SCBNL)	0.5	0.5	0.5

As you can see Century Commercial Bank Ltd’s interest rate is HIGHER than all other banks where NIC ASIA Bank Ltd’s interest rate is the second highest for this quarter. Updated on 24-08-2020

Foreign Currency Account For NRNs And Freelancer

First, you have to know what you are using a bank account that is an NPR account which requires basic documents like ID proof and address proof to open an account.

You can’t receive foreign currency in an NPR account. This means if someone tries to send foreign currency in your account the currency will be converted to Nepali rupees then it will be deposited to your account.

If your earnings are in foreign currency like dollar, euro, canadian, australian, pound sterling japanese yen and others then this article will help you.

If you are a freelancer working in Nepal or NRNs, an employee, job holder, worker, and company holders who are working abroad you know that sending money from abroad to Nepal is not easier.

Each time we have to use a remittance service. They will charge you a lot. Then how you will decrease the charges. Before remitting you have to know two major charges.

The Fee And Charges

The first is the fee (sending charges) second is the currency conversion charges (foreign currency to Nepalese rupees). 

The first one is the fee which the remittance company is charging between $2 to $35. When you send money to any debit card the fee of $2 or a little bit more applies.

Where some banks and wallet companies have this feature. But all remittances, banks, or wallets do not have this debit card deposit service. To know more about the service kindly contact the concerned institution where your existing account is.

The fee of $35 will be charged when you send the money through wire transfer. Almost all banks have wire transfer services. The wire transfer is beneficial when you send at least or more than $1000. The second is the currency conversion charge which depends upon the sending amount and on the market exchange rate. Where remittance companies used mid market exchange rate. The market exchange is not fixed, it’s always fluctuating.

Why Do We Need A Foreign Currency Account

Without wasting your time we come to the point of why we need a foreign currency account and what are the benefits. You need foreign currency to save your hard earned money and avoid the exchange rate. This will save your thousands.

If you’re earning in foreign currency then you have to pay the fee (sending charge) only to the foreign banks. The amount will deposit in foreign currency like a dollar to dollar, canadian dollar to canadian dollar to your account in Nepal. Now you got the flexibility to withdraw an amount when the exchange rate is high. Keep in mind the foreign currency rate is always going up & up, so keep you earning till you get the maximum exchange rate.

Documents Required To Open A Foreign Currency Account

Your earning should be from a legitimate source. Get a deposit for professional works only. Banks can verify the amount at any time if they find any illegal activity. These requirements should be fulfilled before account opening:

1. Agreement letter with the company or organization.
2. The salary slip or the earning certificate.
3. You need hard cash from $10 to $100 depending upon banks.
4. Other relevant documents (optional).

Never Do With Your FCY Account

• Never get a deposit from a friend or relative.
• Don’t violation of the terms and conditions FCY account.
• Do not get deposit any amount if you don’t have a legitimate reason or documentation.
• Never get a deposit for personal expenses or medical expenses from a person rather than a company or origination.