Section 4: Procedure for Carrying on Foreign Exchange Transactions

1) No person shall, without obtaining permission from the Bank, carry on a foreign exchange transaction with any person other than the licensee.

2) No licensee or any other person shall carry on the foreign exchange transaction by giving the Nepalese currency and taking the foreign currency and vice versa at a rate that is different from the exchange rate specified by the Bank.

3) If any person obtains a foreign exchange for any specific purpose or on any terms, that person shall not use such a foreign currency for any other purpose or violate such terms. Suppose the foreign currency so obtained cannot be used for the intended purpose, or the terms cannot be met. In that case, that person shall sell such a foreign exchange to the licensee person or bank at the rate specified by the Bank, within thirty days after the date of knowledge of that matter.

4) If any person obtains the foreign exchange to import any goods into Nepal and does not import such goods within the reasonable period of time or the goods of the value equal to that of the foreign exchange so obtained, that person shall be deemed to have failed to use the foreign exchange so obtained in that purpose or to fulfill such terms.