In a recent development, Wise has announced that it will no longer support transfers of Nepalese Rupee (NPR) to Nepalese accounts if your address is based in Nepal.
Wise cited compliance reasons for the change, saying that it is no longer able to comply with the Nepal Rastra Bank’s (NRB) regulations on foreign exchange. The NRB has recently tightened its regulations on foreign exchange in an effort to control the country’s balance of payments.
Why did Wise stop supporting NPR Transfers?
Nepal Rastra Bank (NRB) recently tightened its regulations on foreign exchange in an effort to control the country’s balance of payments. As part of these regulations, the NRB has prohibited Wise from processing NPR transfers to Nepalese accounts if the sender’s address is based in Nepal.
The NRB has cited concerns about money laundering and capital flight as the reason for the prohibition. The NRB believes that Wise was being used to launder money and to facilitate capital flight from Nepal.
The Transition: An Alternative Solution to NPR Transfer
As Wise no longer supports transfers of NPR to accounts in Nepal with a Nepalese address, users are left searching for an efficient workaround.
Fortunately, Wise offers an alternative method to transfer funds to your Nepalese account by making a USD transfer.
To initiate this process, you would need to add your bank account as USD in the recipients’ section. Then, select the currency as USD and the transfer mechanism as SWIFT.
Cost and Charges
When it comes to the cost of transferring funds, Wise provides a transparent fee structure. For transfers below $500, the fee is $3.29, subject to additional SWIFT fees if applicable.
However, for amounts exceeding $500, Wise charges a fixed fee of $14, eliminating the possibility of any additional SWIFT charges.
Timelines and Processing
Efficiency is paramount when transferring funds, and it’s essential to be aware of the estimated timelines involved. With Wise, it usually takes one US working day, plus an additional Nepal working day for the funds to reach your bank account.
While this duration may vary slightly depending on factors beyond Wise’s control, it provides a reliable estimate to manage your expectations and plan your finances accordingly.
Bank Requirements and Documentation
Upon receiving the transferred funds in your bank account, it’s essential to bear in mind that the bank may require additional documentation to verify the source of funds, unlike the wise NPR transfers.
Each bank has its own set of rules and regulations, and the request for additional documents can vary accordingly. It is advised to have the necessary paperwork ready in case your bank requests it, ensuring a seamless transfer process.
Conversion Rates and Currency
One significant aspect to consider in wire transfers is the conversion rate applicable to the transfer. When you receive USD into your NPR account, the conversion rate is determined based on the prevailing rate on that particular day. This means the amount you receive in Nepalese Rupees could vary slightly depending on the currency exchange rates.
On the other hand, if you maintain a USD account, the funds will remain in the original currency, eliminating any concerns related to conversion rates.
Wise’s decision to stop supporting NPR transfers to Nepalese accounts is a significant change that will have a major impact on Nepalese who rely on the service to send money earned from freelancing, and various remote jobs.
However, there are still some alternative options available, such as making a USD transfer through Wise.