chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Payment and Settlement Act, 2019

37. Punishment: (1) A person committing the following offences shall be liable to the following punishment:-

(a) For an offence under clauses (a) and (b) of Section 36, imprisonment from five years to ten years or a fine up to one crore rupees or both,
(b) For an offence under clauses (c), (d) and (e) of Section 36, imprisonment up to two years or a fine up to ten lakh rupees or both.

(2) If any person commits an offence under clauses (f), (g) and (h) of Section 36, the Bank may, based on the nature and severity of the offence, impose a fine ranging from one lakh rupees to five lakh rupees on the offender.

(3) If the proceeds of crime are determined in an offence punishable under sub-section (1), such proceeds of crime shall be recovered from the concerned offender pursuant to prevailing law.

(4) A person who attempts to commit an offence under Section 36 or abets such offence shall be liable to half the punishment prescribed for the principal offender.

(5) If any person fails to deposit the fine imposed by the Bank pursuant to sub-section (2) in the Bank within thirty days, the Bank may write to the concerned body to arrange for the recovery of the proceeds of crime amount by deducting such amount from the deposit held in any bank and financial institution in his/her name or by attaching immovable property in his/her name. 38. Government of Nepal to be Plaintiff: The Government of Nepal shall be the plaintiff in cases related to the offences mentioned in clauses (a), (b), (c), (d) and (e) of Section 36. 39. Appeal Lies: A party dissatisfied with the punishment imposed by the Bank pursuant to sub-section (2) of Section 37 may appeal to the concerned High Court within thirty-five days from the date of receipt of the order of punishment. 40. Written Communication for Action: (1) If the Bank receives information through any means that an offence under Section 36 has been committed, the Bank shall write to the concerned authority to investigate such offence.

(2) If the Bank receives information that any institution or officer has committed any offence punishable under prevailing law other
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

Black Market and Certain Other Social Offences and Penalties Act, 2032

Certification and Publication Date
2032.5.20

Amending Acts

1. Justice Administration Act, 2048 2048.2.16
2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.7
3. Some Nepal Acts Amendment Act, 2072 2072.11.13
4. Some Nepal Acts Amendment to Make Compatible with the Constitution of Nepal Act, 2075 2075.11.19
5. Some Nepal Acts Amendment Relating to Improvement of Economic and Business Environment and Enhancement of Investment Act, 2081 2081.12.18

Act No. 10 of the year 2032



Black Market and Certain Other Social Offences and Penalties Act

Preamble: Whereas it is desirable to control black marketeering, profiteering, hoarding, adulteration and certain other social offences in order to maintain the health, convenience and economic interest of the general public,

This Act is hereby enacted by His Majesty King Birendra Bir Bikram Shah Dev on the advice and with the consent of the National Panchayat. 1. Short Title, Extent and Commencement: (1) This Act may be called the "Black Market and Certain Other Social Offences and Penalties Act, 2032".

(2) This Act shall extend throughout Nepal removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066..

(3) This Act shall come into force immediately. 2. Black Market: If any person commits or causes to commit any of the following acts, he/she shall be deemed to have committed black marketeering and shall be punished as mentioned below:

(a) If any person sells any goods at a price higher than the price fixed by the Government of Nepal, or in the case of goods for which the price has not been fixed by the Government of Nepal, higher than the price fixed by the producer, importer or main distributor of the goods specified by the Government of Nepal by publishing a notice in the Nepal Gazette, the price so taken for such goods shall be refunded, such goods shall be confiscated, and he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to one year and may also be liable to a fine of up to ten lakh rupees.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

Explanation: While fixing the wholesale or retail price of any goods, after consulting with the concerned field, attention shall normally be paid to the following matters so that the consumer gets the goods at a reasonable price:

(a) Cost of goods,
(b) Freight and carriage,
(c) Customs duty,
(d) Taxes, fees and all kinds of reasonable expenses recognized by the prevailing law incurred in importing or producing goods,
(e) Establishment expenses,
(f) Reasonable commission of dealer, retailer or agent, and
(g) Reasonable profit of producer or importer.

(b) If any person, having obtained any goods as mentioned in clause (a) which are not readily available in the open market at the fixed price in the desired quantity, by order or coupon or otherwise, purportedly for personal consumption, sells or otherwise transfers such goods or the order/coupon, with or without taking excess price or commission, then the price or commission taken for such goods or order/coupon shall be refunded, such goods shall be confiscated, and the order/coupon shall be cancelled, and he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to one year or a fine of up to two lakh fifty thousand rupees or both. Provided, however, that:

(1) If after obtaining the goods they are no longer needed, they shall be given, without increasing the price at which they were obtained, as soon as they are not needed, to the person specified by the person in whose name the order/coupon was obtained, with that person's written consent. If the goods have not yet been obtained, the order/coupon shall be returned immediately.

(2) If, without taking excess price, such goods are given in a small quantity to a relative or neighbor to meet their personal needs, it shall not be deemed an offence under this clause.

(c) If any person sells tickets for any entertainment or transport service, for which a fee or fare is charged, at a price higher than the ticket price, the excess amount taken shall be confiscated, and he/she shall be liable to imprisonment for a term up to 1 year or a fine or both.

(d) The Government of Nepal may, as required for the purpose of fixing prices under this section, constitute Price Fixation Advisory Committees. 3.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

3. Profiteering: removed by the Some Nepal Acts Amendment Relating to Improvement of Economic and Business Environment and Enhancement of Investment Act, 2081.

(2) Notwithstanding anything contained in section 2, in the case of goods imported by incurring a loss on exports, profit may be taken in accordance with the prevailing law amended by the Some Nepal Acts Amendment Relating to Improvement of Economic and Business Environment and Enhancement of Investment Act, 2081. so as to also cover the loss incurred on the export.

(3) Every wholesale or retail seller shall display a price list of the goods specified by the Government of Nepal at the place of sale in a manner visible to all. Any person failing to do so shall be liable to imprisonment for a term up to 1 year or a fine or both. 4. Diversion of Goods: If any person takes to another place or sells elsewhere any goods that have been allotted by the Government of Nepal for distribution in a amended by the Some Nepal Acts Amendment to Make Compatible with the Constitution of Nepal Act, 2075. province or district, or goods imported for sale and distribution in a amended by the Some Nepal Acts Amendment to Make Compatible with the Constitution of Nepal Act, 2075. province or district, or goods available as an agent, dealer or retailer, or sells goods contrary to the terms of agency or dealership, or in a manner that prevents proper distribution to consumers, he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to one year or a fine of up to two lakh fifty thousand rupees or both. 5. Hoarding and Artificial Scarcity: If any person hoards any goods by collecting them without selling, with the intention of selling them in the market after creating an artificial scarcity of such goods in the market, thereby causing a price increase and taking undue profit, he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to one year or a fine of up to two lakh fifty thousand rupees or both. Provided, however, that in relation to goods declared by the Government of Nepal in the Gazette to be essential, if the same offence is committed by the producer, importer or main distributor, or any dealer or agent of theirs, he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to one year or a fine of up to ten lakh rupees or both. 6.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

6. Deceptive Sale and Distribution: If any person sells or distributes any goods by misrepresenting inferior goods as good goods, or by creating the impression that one good is another, or by adulterating any goods in a manner that reduces their quality, without disclosing such fact, he/she shall be liable to amended by the Some Nepal Acts Amendment Act, 2072. imprisonment for a term up to nine months or a fine of up to two lakh rupees or both. 7. Adulteration of Medicine and Sale of Adulterated Medicine: (1) If any person, with the intention of selling or causing use as pure medicine, or knowing that it is likely to be so sold or used, adulterates any medicine in such a way that its effect becomes nullified, reduced, altered, or harmful, or knowingly sells, attempts to sell, keeps for sale, gives to anyone for treatment, or causes any person unaware of the adulteration to consume such adulterated or expired medicine, he/she shall be punished as follows:

(a) If there is a possibility of danger to life, life imprisonment or imprisonment for a term up to ten years and a fine,
(b) If there is a possibility of impairment or loss of function of any part of the body, imprisonment for a term up to ten years and a fine,
(c) In other cases, imprisonment for a term up to five years or a fine or both.

(2) If any other substance is sold as medicine, it shall also be deemed an offence under sub-section (1) and punished accordingly. 8. Upper Limit of Fine and Imprisonment in Lieu of Fine: removed by the Some Nepal Acts Amendment Act, 2072. (1)

(2) While imposing the penalty of a fine, the officer hearing the case shall also specify in his decision the period of imprisonment to be served in default of payment of the fine.

(3) If the offence for which a fine is imposed also carries a sentence of imprisonment, the imprisonment in default of payment of fine under sub-section (2) shall not be specified for a period exceeding five years. In case of life imprisonment, no additional imprisonment shall be imposed in lieu of the fine. 9.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

In case of life imprisonment, no additional imprisonment shall be imposed in lieu of the fine. 9. Offence by an Organised Institution: (1) If the person committing an offence under this Act is an organised institution or company, the director, general manager, any other officer or person having control over the affairs of such organised institution or company shall be liable for such offence, unless he/she proves that the offence was committed without his/her knowledge or that he/she had exercised all due diligence to prevent the commission of the offence.

(2) Notwithstanding anything contained in sub-section (1), if an offence committed by an organised institution or company is proven to have occurred due to the wilful act or negligence of a director, general manager or any other officer of such organised institution or company, such director, general manager or officer shall also be liable to punishment under this Act. 10. Commission: If any person reports to the relevant authority that an offence under this Act has been or is about to be committed, and the offender is arrested and convicted, twenty-five percent of the fine imposed on the offender shall be given to the person making the report. 11. Punishment for False Information or Complaint: If any person, with the intention of intimidating, threatening, defaming, or causing trouble, annoyance or harassment to another, knowingly makes a false complaint, despite having reason to believe it is false, or fabricates false evidence, or makes a false complaint without reasonable grounds or suspicion, he/she shall be liable to imprisonment for a term up to three months or a fine of up to five thousand rupees or both. 12. Disqualification: A person sentenced to imprisonment for more than 6 months under this Act, except for section 11, shall not be eligible to serve in the Government of Nepal or any organisation owned by the Government of Nepal, or to obtain contracts or licenses, until five years have elapsed since the sentence was served. 13.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

13. Power of Arrest and Search: (1) If any person commits an offence punishable under this Act, or if a reasonable complaint is made or credible information is received that such an offence has been committed, or if a reasonable suspicion arises and a warrant is issued by an officer mentioned in sub-section (2), a police officer up to the rank of Sub-inspector may arrest such person.

(2) In the circumstances mentioned in sub-section (1), removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. the Chief District Officer or an officer designated by the Government of Nepal in this regard may also make an arrest themselves or order another person to do so.

(3) Search of any village, house or vehicle where there is reasonable suspicion that the person to be arrested is hiding or that goods related to the offence under this Act are kept, may be conducted by a police officer up to the rank of Sub-inspector, or removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. the Chief District Officer or an officer designated by the Government of Nepal in this regard, or a government employee up to the rank of Kharidar authorised in writing by them, in accordance with the prevailing Nepal law.

(4) During a search, goods, vehicles, documents, cash, etc., related to the offence under this Act may be seized. 14. Procedure for Filing a Case: (1) A case under this Act shall not be filed without the approval of the Government of Nepal or an officer designated by the Government of Nepal by publishing a notice in the Nepal Gazette.

(2) If a retail trader operating a small shop on the roadside or elsewhere commits an offence under sections 3, 4 and 5, the officer under sub-section (1) may, considering the nature of the offence, if it is a first offence, deposit the profit unduly taken, recover it from the person concerned, obtain a written undertaking that such an offence will not be committed in the future, and dispose of the matter by keeping it on record without filing a case.

(3) A case under this Act must be filed within 90 days from the date the offence was committed or discovered. 15. Officer to Hear the Case: (1) amended by the Some Nepal Acts Amendment Act, 2072.
Black Marketing and Some Other Social Offenses and Punishment Act, 1975

15. Officer to Hear the Case: (1) amended by the Some Nepal Acts Amendment Act, 2072. The initial proceedings and adjudication of cases relating to offences punishable under section 7 shall be conducted by the District Court.

(2) The Chief District Officer shall have the authority to conduct initial proceedings and adjudicate cases relating to offences punishable under sections other than those mentioned in sub-section (1).

(3) While conducting proceedings and adjudicating cases under this Act pursuant to sub-section (1) or (2), the District Court or Chief District Officer shall follow the procedure under the Special Court Act, 2059.

(4) An appeal against a decision made under sub-section (1) or (2) may be filed within thirty-five days. An appeal against a decision made by the Chief District Officer shall lie to the District Court. 16. Public Censure of Convicted Person: After a final decision, if it appears to be in the broader public interest to publish the name, address, nature of the offence and sentence of a person convicted under this Act, the judge or officer making the final decision may order that such information be published in a newspaper or through any other medium, and the person be publicly censured. 17. Protection of Actions Taken under this Act: No suit, complaint or legal action shall lie against any person for any act done or attempted to be done in good faith under this Act. 18. Sale and Distribution of Confiscated Goods: The arrangement for the sale and distribution of goods confiscated under this Act shall be made by the Government of Nepal. If such confiscated goods are required to be destroyed, the expenses thereof may be recovered from the person concerned in the same manner as government dues. 19. Remand of the Accused: The accused shall be remanded to custody during trial if there is a likelihood of the accused failing to appear on the specified date, or absconding if released on bail or surety, or interfering with evidence, or committing another offence under this Act. 20. Government of Nepal to be Plaintiff: The Government of Nepal shall be the plaintiff in cases under this Act, and it shall be deemed to be included in Schedule-1 of the Government Cases Act, 2049. 21. Prosecution under Other Prevailing Laws: If an act constituting an offence under this Act also constitutes an offence under any other prevailing Nepal law, this Act shall not be deemed to bar proceedings under such other law. 22. Delegation of Powers: The Government of Nepal may, by a notified order published in the Nepal Gazette, delegate all or any of the powers vested in it under this Act to any officer. 23.
Foreign Exchange (Regulation) Act, 1962

Foreign Exchange (Regulation) Act, 2019

Royal Seal and Publication Date
2019.03.15

Amending Acts

1. Nepal Acts Amendment, Repeal and Re-enactment Act, 2019 2019.12.30
2. Judicial Administration Reform (Fourth Amendment) Act, 2043 2043.07.24
3. Foreign Exchange (Regulation) (First Amendment) Act, 2044 2044.07.01
4. Some Nepal Acts Relating to Finance Amendment Act, 2047 2047.08.27
5. Some Nepal Acts Amendment Act, 2048 2049.01.08
6. Foreign Exchange (Regulation) (Second Amendment) Act, 2058 2059.04.22

Ratification and Publication Date

7. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.07
8. Some Nepal Acts Amendment Act, 2072 2072.11.13
9. Some Nepal Laws Amendment, Consolidation, Adjustment and Repeal Act, 2074 2074.06.30
10. Some Nepal Acts Amendment Act, 2075 2075.11.19
11. Some Nepal Acts Relating to Economic and Business Environment Improvement and Investment Enhancement Amendment Act, 2081 2081.12.18

Act No. 5 of the year 2019



An Act Made to Regulate Transactions Relating to Foreign Exchange

Preamble: Amended by the Nepal Acts Amendment, Repeal and Re-enactment Act, 2019. Whereas, it is desirable to regulate transactions relating to foreign exchange to a greater extent in order to safeguard the economic interests of the general public;

Now, therefore, His Majesty King Mahendra Bir Bikram Shah Deva has, in accordance with Article 93 of the Constitution of Nepal Amended by the Nepal Acts Amendment, Repeal and Re-enactment Act, 2019., enacted this Act. 1. Short Title, Extent and Commencement: (1) This Act may be called the "Foreign Exchange (Regulation) Act, 2019".

(2) This Act shall extend to the whole of Nepal Amended by the First Amendment and amended by the Second Amendment. and shall also apply to all Nepalese citizens residing outside Nepal Amended by the First Amendment and amended by the Second Amendment. and to firms, companies, institutions registered in Nepal Amended by the First Amendment and amended by the Second Amendment. and having their place of business outside Nepal Amended by the First Amendment and amended by the Second Amendment., including their branch offices and agencies.

(3) This section shall come into force immediately, and the other sections shall come into force in such areas on such dates as the Government of Nepal may, by notification in the Nepal Gazette, specify from time to time; The places and dates of commencement of the sections of this Act are mentioned at the end of the Act. 2.
Foreign Exchange (Regulation) Act, 1962

Amended by the First Amendment. (h) "Gold" includes gold in the form of coins, whether or not legal tender, gold bullion and sheets, whether refined or not, and ornaments and articles wholly or mainly made of gold. Amended by the First Amendment. (i) "Silver" includes silver in the form of coins, whether or not legal tender, silver bullion and sheets, whether refined or not, and ornaments and articles wholly or mainly made of silver.

(j) "Bank" means Nepal Rastra Bank.

(k) "Prescribed" or "as prescribed" means prescribed or as prescribed by rules made under this Act.

(l) "Owner in relation to any security" means the person entitled to sell, transfer or assign the security, or the person in whose name the security stands, or the person receiving dividends or interest on the security on his own behalf or on behalf of another person, or a person having any interest in the security, and where the security is held in trust or its dividends or interest are credited to a trust fund, it means the person entitled to manage, terminate or vary the trust or any of its terms with or without the consent of any other person, or the person entitled to control the investment of the trust money. Added by the First Amendment. (m) "Investigation Officer" means an investigation officer appointed pursuant to Section 11A. Added by the First Amendment. (n) "Person Resident in Nepal" means any of the following persons:-

1. Nepali citizens, except those Nepali citizens residing outside Nepal for a period longer than that Amended by the Second Amendment. specified by the Bank by publishing and circulating a public notice for employment, trade or any other business or any other work,

2. Non-Nepali citizens residing in Nepal for a period longer than that Amended by the Second Amendment. specified by the Bank by publishing and circulating a public notice for employment, trade or any other business. Added by the First Amendment. (o) "Person Resident Outside Nepal" means any person other than a person resident in Nepal. Amended by the Second Amendment. 3. License Required to Conduct Foreign Exchange Transactions: (1) A person, firm, company or institution desiring to conduct foreign exchange transactions must obtain a license from the Bank.

(2) A person, firm, company or institution desiring to conduct foreign exchange transactions must submit an application to the Bank with the details prescribed by the Bank for obtaining a license.

(3) Upon receipt of an application pursuant to sub-section (2), the Bank may, based on prescribed criteria, make necessary inquiries and, if deemed appropriate, grant a license to the concerned person, firm, company or institution to conduct foreign exchange transactions.
Foreign Exchange (Regulation) Act, 1962

While granting a license, the Bank may also specify the type of foreign exchange for transaction, limit, duration for which transactions may be conducted, and other necessary conditions.

(4) The Bank may, from time to time, issue necessary orders or directives to a licensee regarding the regulation and management of foreign exchange transactions. It shall be the duty of the licensee to comply with such orders or directives.

(5) A licensee must pay annual fees and a deposit to the Bank as prescribed. The Bank may cancel or suspend the license of a licensee who fails to pay the prescribed annual fee or deposit.

(6) If a person, firm, company or institution requests a one-time license for conducting foreign exchange transactions, the Bank may, subject to this section, grant such a one-time license to that person. Added by the Second Amendment. 3A. Bank May Take Action: (1) If a licensee fails to comply with an order or directive given by the Bank under this Act, the Bank may take any or all of the following actions against such licensee:-

(a) Issue a warning,

(b) Prohibit any or all foreign exchange transactions,

(c) Forfeit the cash deposit held with the Bank or recover from the guarantee,

(d) Suspend or cancel the license.

(2) While taking action against a licensee pursuant to sub-section (1), the Bank shall provide the licensee a reasonable opportunity to present a defense in his favor. Added by the Second Amendment. 3B. Other Provisions Relating to Foreign Exchange Transactions: Provisions relating to foreign exchange transactions other than those provided in this Act shall be as prescribed by the Bank by publishing and circulating a public notice. Amended by the First Amendment. 4. Amended by the Second Amendment. Procedure for Conducting Foreign Exchange Transactions: (1) No one shall conduct a foreign exchange transaction with any person other than a licensee, without the approval of the Bank.

(2) A licensee or any other person shall not conduct a foreign exchange transaction involving the exchange of Nepali currency for foreign currency or foreign currency for Nepali currency at a rate different from the conversion rate prescribed by the Bank.

(3) If a person has obtained foreign exchange for a specific purpose or subject to a condition, such person shall not utilize such foreign exchange for other purposes or violate the said condition.
Foreign Exchange (Regulation) Act, 1962

If it becomes impossible to utilize the foreign exchange so obtained for the relevant purpose or to fulfill the said condition, such person shall, within thirty days from the date of knowledge of such fact, sell such foreign exchange to a licensee or the Bank at the rate determined by the Bank.

(4) If any person has obtained foreign exchange for the import of any goods into Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., and such person fails to import such goods within a reasonable period or fails to import goods of a value equivalent to the foreign exchange so obtained, such person shall be deemed to have been unable to utilize the foreign exchange so obtained for that purpose or to have failed to fulfill the condition. Added by the First Amendment and amended by the Second Amendment. 4A. Provision Relating to Foreign Exchange Received by Nepali Citizens: (1) Matters relating to foreign exchange received by a Nepali citizen shall be as prescribed by the Bank by publishing and circulating a public notice.

(2) If a Nepali citizen, after returning to Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., wishes to keep abroad the foreign exchange earned during the period of stay abroad or the investment made from such foreign exchange, or to invest it abroad, he may do so by informing the Bank of such fact, except in the circumstances mentioned in Section 6. Added by the Second Amendment. 4B. Payment for Sale of Goods or Provision of Services to Foreigners: A person, firm, company or institution located in Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. shall, when receiving payment for the sale of any goods or provision of services to any foreign person, firm, company or institution, receive such payment in convertible foreign currency, unless otherwise provided by the Bank by publishing and circulating a public notice. Amended by the Second Amendment. 5. Restriction on Export or Import of Certain Currency and Bullion: (1) The Government of Nepal may, by notification in the Nepal Gazette, issue an order prohibiting any person, firm, company or institution from bringing or sending into the whole or any specified area of Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. any specified type of Nepali currency or foreign currency without a license from the Bank.
Foreign Exchange (Regulation) Act, 1962

While issuing such an order, the Government of Nepal may specify in such order that such prohibition shall not apply to any person, firm, company or institution or in relation to any specified type of Nepali currency or foreign currency.

(2) No person, firm, company or institution shall take or send out of any area of Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. Nepal any Nepali currency or any foreign exchange other than that obtained from a licensee, without a license from the Bank. Provided that the Government of Nepal may, by notification in the Nepal Gazette, issue an order that such prohibition shall not apply in relation to any foreign exchange. 6. Government of Nepal's Power to Acquire Foreign Exchange: (1) Amended by the First Amendment. In a situation where the country faces an economic and monetary crisis leading to a foreign exchange crisis, the Government of Nepal may, by notification in the Nepal Gazette, order a Nepali citizen who is the owner of foreign exchange to do the following with respect to the foreign exchange owned by him:-

(a) To deposit or cause to be deposited with the Bank or with a person authorized by the Bank for that purpose, for sale at the rate determined by the Bank, in the name of the Government of Nepal, the foreign exchange specified in such notification,

(b) A person entitled to confer on others the right to receive the foreign exchange specified in such notification shall transfer such right upon receiving the value determined at the rate determined by the Bank, in the name of the Government of Nepal. Provided that the Government of Nepal may, by the same notification or by issuing another order, make the said order inapplicable in relation to any specific person or class of persons.

(2) This section shall not apply to foreign exchange obtained by a person from a licensee and kept, with the permission of the Bank, for a specific purpose. 7.
Foreign Exchange (Regulation) Act, 1962

7. Duty of Persons Capable of Receiving Foreign Exchange: (1) No person entitled to receive foreign exchange from outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. or to receive payment in Nepali currency Amended by the First Amendment. shall do any act which may result in delay in or non-receipt of such foreign exchange or Amended by the First Amendment. payment in Nepali currency, in whole or in part, without the permission of the Bank Amended by the Second Amendment..

(2) If any person contravenes sub-section (1), the Bank may issue such directions to that person as it deems necessary for receiving the foreign exchange or effecting Amended by the First Amendment. payment in Nepali currency. 8. Obligation of Importer: (1) Any person, firm, company or institution importing any goods into Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. by opening a letter of credit or in any other manner, with payment to be made in foreign exchange, shall import such goods within the time prescribed by the Bank and submit to the Bank documents as prescribed by the Bank.

(2) Provisions relating to the type and procedure of foreign exchange for payment for import shall be as prescribed by the Bank by publishing and circulating a public notice.

(3) The importer shall import the goods declared in the letter of credit strictly according to the price and quantity mentioned in that letter of credit, unless the prior approval of the Bank has been obtained. Provided that there shall be no bar to importing goods according to the revised price and quantity if the letter of credit has been amended.

(4) If, when an importer opens a letter of credit for import with a commercial bank, another person, firm, company or institution has stood as guarantor or is directly or indirectly involved in the related transaction, and if any misappropriation or misuse of foreign currency occurs in that transaction in any manner, then, notwithstanding anything contained in the prevailing law, the person, firm, company or institution standing as guarantor or directly or indirectly involved in such transaction shall also be liable to punishment under this Act for the misappropriation or misuse of foreign currency.

(5) Notwithstanding anything elsewhere contained in this section, the procedure for the import of knowledge and information technology and payment therefor shall be as prescribed by the Bank by publishing and circulating a public notice.

(6) An importer must make correct invoicing. Doing or not doing acts such as the same, and any act related thereto, is prohibited. 9.
Foreign Exchange (Regulation) Act, 1962

Doing or not doing acts such as the same, and any act related thereto, is prohibited. 9. Payment of Value of Exported Goods: (1) The Government of Nepal may, by notification in the Nepal Gazette, prohibit the export of such goods as may be specified in such notification to any place outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. except as provided under sub-section (2). Deleted by the First Amendment.

(2) For the purposes of this section, the Government of Nepal may, in consultation with the Bank, make necessary rules or issue directives or orders. 9A. Regarding Receiving Payment for Exported Goods: (1) The exporter shall fill in the details stated in the export declaration form prescribed by the Bank and declare to the customs officer that he will bring payment for the declared value in the declaration form in foreign exchange approved by the Bank within the prescribed period.

(2) If, before receiving payment for the exported goods, the payment is to be made at a value lower or higher than the value declared in the declaration form, the exporter shall apply to the Bank with evidence thereof; and if the matter is confirmed, the Bank may grant approval to receive such lower or higher payment.

(3) If the exporter does not receive payment for the value of the exported goods within the period prescribed under sub-section (1), he shall be deemed to have contravened this Act.

(4) Notwithstanding anything contained in sub-section (3), if the exporter submits an application to the Bank stating reasonable grounds and evidence for being unable to receive payment for the value of the exported goods within the period prescribed under sub-section (1), and if the Bank is satisfied therewith, the Bank may fix a further period and issue an order as follows to the concerned exporter:-

(a) If the goods have been sold, to bring the payment therefor,

(b) If the goods have not been sold, to sell them and bring the payment or to bring back such goods to Nepal. Proviso added by the Second Amendment.
Foreign Exchange (Regulation) Act, 1962

Proviso added by the Second Amendment. Provided that if the exporter submits an application to the Bank stating reasonable grounds and evidence for being unable to bring payment for the exported goods due to circumstances beyond his control, the Bank may, after making necessary inquiry, allow the return of such goods or grant exemption from bringing partial or full payment.

(5) If the Bank wishes to certify that the value declared in the declaration form is payable within the prescribed period in the prescribed manner, it may require the exporter to submit the agreement made with the foreign buyer in this regard and other evidence.

(6) To ensure that full payment for the value of exported goods is received, the Bank may issue an order requiring the following to be done in respect of all or any specific type of goods to be exported or all or any specific exporter:-

(a) Except where otherwise prescribed by the Government of Nepal, payment for exported goods must be received only through letters of credit or through other means prescribed by the Bank,

(b) To certify that the value declared in the declaration form pursuant to sub-section (1) is the actual value of the export, the declaration form must be submitted to the officer or institution prescribed by the Bank. Added by the Second Amendment. (7) Notwithstanding anything elsewhere contained in this section, the procedure for the export of knowledge and information technology and receiving payment therefor shall be as prescribed by the Bank by publishing and circulating a public notice. 9B. Acts Prohibited for Exporter: An exporter shall not do any of the following acts:-

(a) Receive payment for exported goods by any means other than the prescribed means,

(b) Make arrangements to receive payment for exported goods with a delay exceeding the prescribed period,

(c) Do any act which results in not receiving full payment for the value of the exported goods,

Added by the Second Amendment. (d) Do any act which results in incorrect invoicing or any other act related to such act. 9C. Restriction on Making or Receiving Payment: Amended by the Second Amendment.
Foreign Exchange (Regulation) Act, 1962

9C. Restriction on Making or Receiving Payment: Amended by the Second Amendment. Except as prescribed by the Bank, no person resident in Nepal shall, directly or indirectly, do or cause to be done any of the following acts:-

(a) Make any kind of payment in any manner to any person resident outside Nepal,

(b) Draw, accept or negotiate any bill of exchange or promissory note, or incur any debt, so as to create or transfer a right to receive payment in favor of any person resident outside Nepal,

(c) Make any kind of payment to any person by order of or on behalf of any person resident outside Nepal. 10. Control of Export and Transfer of Securities: Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. Except as prescribed by the Bank, no person shall do any of the following acts:-

(a) Export any security to any place outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.,

(b) Transfer any security to the name of any person resident outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.,

(c) Give any security to any person for the purpose of acquisition, holding or control in any manner Amended by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. resident outside Nepal. Explanation: For the purposes of this section, "Transfer" in relation to any security includes transfer as a loan or security. 10A.
Foreign Exchange (Regulation) Act, 1962

Explanation: For the purposes of this section, "Transfer" in relation to any security includes transfer as a loan or security. 10A. Regulation of Investment Abroad: Amended by the Some Nepal Acts Relating to Economic and Business Environment Improvement and Investment Enhancement Amendment Act, 2081. (1) Notwithstanding anything contained in the prevailing law, the following companies or enterprises established in Nepal may invest abroad:-

(a) Industries exempted by the notice under sub-section (2) of Section 3 of the Investment Prohibition Act, 2021, to the extent of being allowed to invest abroad,

(b) Industries falling under the classification of information technology industry according to the prevailing law relating to industrial enterprises,

(c) The amount of foreign currency received by a foreign investor pursuant to sub-section (2) of Section 7A of the Foreign Investment and Technology Transfer Act, 2075.

(2) An employee of a company established in Nepal, who is a Nepali citizen resident in Nepal, may receive shares and generate income from such shares under an employee share sale plan operated or implemented by the parent company of the company established in Nepal located abroad or by another subsidiary company of such parent company located abroad, provided that such plan applies to such employee as well, and provided that there is no remittance of convertible currency from Nepal abroad for such shares.

(3) The conditions to be complied with by a company or enterprise investing abroad, the sectoral maximum limit of such investment, and other related provisions shall be as determined by Nepal Rastra Bank by publishing a public notice. 10B. Provision for Taking/Giving Loans in Foreign Exchange: Added by the Second Amendment. No one shall take or give a loan in foreign exchange except as provided by the prevailing law and as prescribed by the Bank by publishing and circulating a public notice. 10C.
Foreign Exchange (Regulation) Act, 1962

10B. Provision for Taking/Giving Loans in Foreign Exchange: Added by the Second Amendment. No one shall take or give a loan in foreign exchange except as provided by the prevailing law and as prescribed by the Bank by publishing and circulating a public notice. 10C. Provision for Repatriation, Investment and Transfer of Rights of Foreign Exchange: Added by the Second Amendment. (1) A foreign investor who has been approved to invest in securities according to the prevailing law may, in accordance with the procedure prescribed by the Bank by publishing and circulating a public notice, take or send abroad in foreign currency the following amounts:-

(a) The investment made in securities and the profit or dividend received therefor,

(b) The investment made in the form of loans or loan facilities and the interest thereon.

(2) If a Nepali citizen residing outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. is approved to invest in foreign exchange within Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., the facility under sub-section (1) shall be provided.

(3) In the case of listed securities among the securities mentioned in clause (a) of sub-section (1), the amount shall be the value at the rate of transaction in the securities exchange market; and in the case of unlisted securities, foreign exchange may be taken or sent based on the assets of the concerned institution determined according to the procedure prescribed by the Bank by publishing and circulating a public notice.

(4) If tax or fee payable according to the prevailing law is paid in foreign currency, any foreign person, firm, company or institution may transfer the rights of securities obtained thereby to another foreign person, firm, company or institution after fulfilling the formalities of the prevailing law.

(5) A foreign investor may take or send abroad the amount for technical fees, royalties, etc., as mentioned in the technology transfer agreement made according to the prevailing law.

(6) The procedure for the repatriation of the amount for air tickets and cargo sold in Nepal by a licensed foreign airline service operating in Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066., its agents, or Nepali persons, firms, companies or institutions authorized to do such work, shall be as prescribed by the Bank by publishing and circulating a public notice.

(7) Notwithstanding anything elsewhere contained in this section, a person, firm, company or institution that has invested in Nepali currency and does not earn foreign currency may give or receive payment in foreign currency under this section. 11.
Foreign Exchange (Regulation) Act, 1962

11. Power to Require Information: (1) Deleted by the Second Amendment.

(2) For the purpose of achieving the objectives of this Act, if the Government of Nepal or the Bank considers it necessary or desirable to obtain or examine any information, account or document, and if such information, account or document is with a person or can be obtained and submitted by such person, the Government of Nepal or the Bank may order such person to submit or obtain and submit such information, account or document to the Government of Nepal or the Bank.

(3) Deleted by the First Amendment. 11A. Appointment of Investigation Officer: Added by the First Amendment. The Government of Nepal may appoint an investigation officer to conduct inquiry and investigation regarding offences under this Act. 11B. Search of Suspected Person: Added by the First Amendment. (1) If there is sufficient reason and basis to suspect that any person has any foreign exchange in contravention of this Act, an order of the Investigation Officer may authorize an employee of at least the second class gazetted rank to conduct a personal search of such person. Provided that, when searching a female, the search shall be conducted only by a female.

(2) If, during a search of a suspected person, any foreign exchange or any document related thereto in contravention of this Act is found, such foreign exchange or document may be seized.

(3) When conducting a search under this section, at least two local persons shall be kept as witnesses and the search shall be conducted in their presence. A record of the foreign exchange or related documents found during the search shall be prepared and signed by the witnesses present. 11C. Stopping and Searching Vehicle: Added by the First Amendment. (1) If there is sufficient reason and basis to suspect that a vehicle has been or is about to be used for an act in contravention of this Act, or that foreign exchange in contravention of this Act is concealed therein, such vehicle may be stopped at any time or place by order of the Investigation Officer.

(2) Any part of the vehicle stopped under sub-section (1) and goods contained therein may be searched or inspected, and if any foreign exchange in contravention of this Act or any document related thereto is found during such search, it may be seized. 11D.
Foreign Exchange (Regulation) Act, 1962

11D. Search of House or Place of Business: Added by the First Amendment. (1) If there is sufficient reason and basis to believe that any foreign exchange in contravention of this Act is concealed or kept in any house or place of business, the Investigation Officer may prepare a memo of such fact and order a search of such house or place of business.

(2) A search pursuant to an order under sub-section (1) shall be conducted by an employee of at least the second class gazetted rank.

(3) The employee assigned to conduct a search under the order of the Investigation Officer shall inform the person currently residing in the house or place of business to be searched of the reason for the search. If the concerned person does not understand such notice, a copy of the notice shall be affixed at a conspicuous place in the house or place of business to be searched. After the notice is affixed, the concerned person shall be deemed to have received notice of the search.

(4) After giving notice to the concerned person pursuant to sub-section (3), the employee assigned to conduct the search must be allowed to search the house or place of business.

(5) If the concerned person objects or obstructs when going to conduct the search, the employee assigned to conduct the search shall give notice and opportunity to the persons residing in the house or place of business to leave. If they do not leave despite being given the opportunity to leave, the outer or inner doors, windows or locks of the house or place of business to be searched may be opened or broken using necessary force and a search may be conducted at any time.

(6) If, during a search, any foreign exchange in contravention of this Act or any document related thereto is found, such foreign exchange or document may be seized.

(7) When conducting a search under this section, Amended by the Some Nepal Acts Amendment Act, 2072. a member of the Rural Municipality or Municipality or at least two local respectable persons shall be kept as witnesses and the search shall be conducted in their presence. A record of any foreign exchange in contravention of this Act or documents related thereto found during the search shall be prepared and signed by the witnesses present. Added by the First Amendment. 11E.