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DOCKING NEPAL’S ECONOMIC ANALYSIS
Information and Communication Technology The COVID-19 pandemic has increased the importance of Information and Communication Technology (ICT) along with the need for telecommunications infrastructure and digital devices for connecting with the world. The review period has witnessed several initiatives by the Government of Nepal to move Nepal towards a digital economy. Internet Service Providers Seek to Increase Internet Prices: The Internet Service Provider Association of Nepal (ISPAN) is seeking approval from Nepal Telecommunications Authority (NTA) to increase internet prices by NPR 300 (USD 2.51) in rural areas and by NPR 150 (USD 1.25) in urban areas, citing an increase in rent of electricity poles and price of optical fiber.141 Internet Service Providers are yet to clear their NPR 1.5 billion (USD 12.59 million) worth of dues to Nepal Electricity Authority (NEA) after it increased rent prices of utility poles.142 NEA has removed several internet and cable TV wires from its poles in Biratnagar, Janakpur, Pokhara, Butwal etc. NTA has urged NEA to resolve the issue with ISPs through dialogue and warned NEA of litigation for removing optical fiber connections which caused disruption of internet services.143 Regulation on OTT and IPTV Platforms Probable: Cable TV operators have threatened to stop their service if the government did not act on regulating OTT and IPTV platforms, as digital platforms have greatly affected their business. Following the
threat, the Ministry of Information Communication Technology has issued a notice stating that every movie that goes on air must be approved by the Film Censor Board basing it on Motion Picture Act of 2077. This also includes movies available through OTT and IPTV platforms who will now need to pass through censorship. The Ministry has warned that if found guilty, fines up to NPR 5000 (USD 41.97) will be levied, licenses will be revoked, and equipment used in film making, exhibiting, and distributing will also be confiscated.144 Limits on Cash Transfer from Mobile Wallets Doubled: Nepal Rastra Bank (NRB) enforced a unified directive on payment systems and increased the limit on transactions carried out through mobile wallet platforms. The limit has increased to NPR 1 million (USD 8,394) per month from NPR 500,000 (USD 4197) per month for transactions from mobile wallet to bank accounts. Additionally, the limit has been increased to NPR 50,000 (USD 419.7) from NPR 25,000 (USD 209.85) for transactions from bank accounts to mobile wallets. The amount that can be held
in mobile wallets overnight has increased to NPR 50,000 (USD 419.7) from NPR 25,000 (USD 209.85), and any amount exceeding this limit will be automatically transferred to the individual’s bank account. A limit of 10 transactions per day has been set for transferring money to an individual’s mobile wallet.145 Study on Possibility of Digital Currency Commenced by NRB: With an objective to minimize the use of paper notes, Nepal Rastra Bank (NRB) has formed two panels to study the possibility of using digital currency in Nepal. The panels are studying the digital currency practices carried out by other countries including China, Singapore, and Hong Kong. NRB is seeking to legalize the use of digital currency with the help of growing access to the internet, increasing digitization in the banking system, and increasing digital literacy. However, cryptocurrency, a form of digital currency, has been banned in the country.146 National Payment Switch Expected to Launch Soon: Nepal Rastra Bank has given approval to Nepal Clearing House to
