Rashtra Bank regulating cross-border retail payments through QR codes, such is the draft

Nepal Rastra Bank has requested opinions and suggestions on the draft regulations related to retail payments made through mobile banking, internet banking, and inter-bank payments using QR codes for international payment transactions.

As electronic payments through QR codes are increasing internationally, Rastra Bank has taken the process forward to explain international retail payments through QR codes more clearly.

Opinions, suggestions, feedback on the draft to the foreign exchange department of Rashtra Bank or by email within the next 3rd of May [email protected] can be sent to The National Bank has proposed that the regular details of international transactions conducted through entities licensed to deal with foreign exchange and organizations licensed to deal with payments should be submitted to the foreign exchange management department and the payment system department of the bank.

Similarly, for electronic payment transactions other than cards, as the retail payment switch has been fully operational under the National Payment Switch since November 2021, it has been proposed that all international retail payment transactions through QR codes (Acquiring and Issuing) will be compulsorily done through the National Payment Switch.

Payment system operators or banks and financial institutions who are currently using their own switches will be encouraged to switch to this arrangement by providing suitable time. For this purpose, such payment system operators or banks and financial institutions have to submit their plans for operating (route) through the national payment switch for international transactions within a certain period to the Nepal Rastra Bank, Payment System Department within 3 months of the implementation of the new system.

For international payment transactions using Quick Response Code, etc., the service fee charged to general customers in retail payment through mobile banking/internet banking and interbank payment will be determined from the market structure. The National Bank can regulate the service fee as needed.

It has been proposed that the licensed institutions receive approval from this bank’s payment system department to enter into a memorandum of understanding with a foreign institution for international banking, quick response code (QR code) payment, and international payment.

Here is the draft