NRB tightens rules on digital payment investments

The Nepal Rastra Bank (NRB) has introduced stricter disclosure requirements for investors and payment service providers (PSPs) operating within the country. Issuing an amended Unified Directive on Payment Systems, 2025, the central bank mandated detailed reporting of transactions and personal information for those investing in digital payment institutions above specified thresholds. Under the new directive, individuals purchasing shares or investments worth more than five percent of the paid-up capital of a payment-related institution, or exceeding Rs 5 million, must submit their personal details to the NRB. The rule also extends to those seeking appointment as directors or senior managers in such companies. Additionally, anyone securing more than five percent of the invested amount or earning capital gains above Rs 2.5 million must disclose financial transaction details to the central bank. Investors are required to provide information regarding any ongoing investigations, prosecutions, or court cases in Nepal or abroad for criminal offenses. For Nepali citizens, the directive further requires a declaration of property holdings outside Nepal, including identification of the real owner or beneficiary of such assets. These provisions apply across digital wallets, payment gateways, fintech firms, and other payment-related institutions. The NRB stated that the stricter provisions are intended to enhance transparency and accountability in the rapidly growing digital payments sector. By enforcing these measures, the central bank aims to closely monitor investments and ensure robust governance within the financial technology landscape.