KATHMANDU, NEPAL
Mahendra Thapa of Myagdi, who had returned back home from Malaysia, exchanged 1,600 ringgit at one Jayanti Money Changer in Mitranagar, Gongabu on Thursday. He should have got Rs 45,456 as per the exchange rate of Rs 28.41 per ringgit for the day, but he got just Rs 44,000 as the money exchanger gave him Rs 1,456 less at the rate of Rs 27.50 per ringgit.
The money exchangers, that have got permission from the Nepal Rastra Bank (NRB), have been fleecing customers in lack of monitoring by the central bank. They do not just exchange the currency at the fixed rate but also do not provide a bill for exchanging. They cheat the consumers by Rs 1-4 per unit of foreign currency exchanged. Though the commercial banks can make some minor adjustments based on the state of demand and supply, money exchangers have to exchange at the rate set by NRB.
The Foreign Exchange (Regulation) Act, 1962 of NRB states that the licensed firm or individual shall not do transactions making changes in the fixed exchange rate but a majority of money exchangers in the capital are not just changing the exchange rate but not even providing any document for exchanging foreign currency. Customers have to produce a photocopy of passport, and fill the numbers printed on the currency notes and personal details while exchanging foreign currency from commercial banks but money exchangers are doing so without giving or asking for any document from the customers though they are also required to keep records as per the NRB Money Changer Guidelines.
Thapa had also exchanged his hard earned money without submitting a copy of passport and individual form. “They did not take my passport even when I insisted. I required money and exchanged it from there as it was near the hotel where I was staying,” he reasoned. Sai Money Changer, also of Gongabu, has also been exchanging money at a different rate without any document. Purna Bahadur Roka of Myagdi, who was also staying at a hotel in Mitranagar, also got less while exchanging Qatari riyal from Sai without any document. “I protested that the amount was less but they argued that it was the prevailing rate. I thought they may be right but later found that I was cheated,” he revealed.
Promoter of Jayanti Shankar Oli claimed that there was a difference in the exchange rate as even they have to exchange at the commercial banks. “We have to invest Rs 5 million. What is the use of working if we do not make some money?” he asked. Sudip Sharma, who works at a money exchanger in Thamel, said the foreign currency they exchange are deposited later at the commercial banks using others’ passports. “This is done to exchange money at the time when the exchange rate has increased and for commission,” he explained. Hotelier in Thamel Sushant Aryal revealed that the money exchangers also exchange the foreign currency of tourists staying at the hotels. “Even I have exchanged on their behalf on many occasions. The guests do not know about the regulations and we get benefits,” he added.
Customers go to money exchangers as the commercial banks ask for documents and exchange only at the rate fixed by NRB. Chief Executive Officer (CEO) of Mega Bank Anil Shah stated that NRB should monitor even the money exchangers and take action against those violating regulations. NRB Spokesperson Bhaskar Mani Gyawali insisted that the money exchangers should function as per the circular issued by NRB and its regulations and said they will be punished if found doing anything differently. “We have also formed regulations for inspection and supervision. They will be immediately punished if found to be doing anything during inspection,” he assured.
Source: Karobar Daily, April 28th 2013
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Mahendra Thapa of Myagdi, who had returned back home from Malaysia, exchanged 1,600 ringgit at one Jayanti Money Changer in Mitranagar, Gongabu on Thursday. He should have got Rs 45,456 as per the exchange rate of Rs 28.41 per ringgit for the day, but he got just Rs 44,000 as the money exchanger gave him Rs 1,456 less at the rate of Rs 27.50 per ringgit.
The money exchangers, that have got permission from the Nepal Rastra Bank (NRB), have been fleecing customers in lack of monitoring by the central bank. They do not just exchange the currency at the fixed rate but also do not provide a bill for exchanging. They cheat the consumers by Rs 1-4 per unit of foreign currency exchanged. Though the commercial banks can make some minor adjustments based on the state of demand and supply, money exchangers have to exchange at the rate set by NRB.
The Foreign Exchange (Regulation) Act, 1962 of NRB states that the licensed firm or individual shall not do transactions making changes in the fixed exchange rate but a majority of money exchangers in the capital are not just changing the exchange rate but not even providing any document for exchanging foreign currency. Customers have to produce a photocopy of passport, and fill the numbers printed on the currency notes and personal details while exchanging foreign currency from commercial banks but money exchangers are doing so without giving or asking for any document from the customers though they are also required to keep records as per the NRB Money Changer Guidelines.
Thapa had also exchanged his hard earned money without submitting a copy of passport and individual form. “They did not take my passport even when I insisted. I required money and exchanged it from there as it was near the hotel where I was staying,” he reasoned. Sai Money Changer, also of Gongabu, has also been exchanging money at a different rate without any document. Purna Bahadur Roka of Myagdi, who was also staying at a hotel in Mitranagar, also got less while exchanging Qatari riyal from Sai without any document. “I protested that the amount was less but they argued that it was the prevailing rate. I thought they may be right but later found that I was cheated,” he revealed.
Promoter of Jayanti Shankar Oli claimed that there was a difference in the exchange rate as even they have to exchange at the commercial banks. “We have to invest Rs 5 million. What is the use of working if we do not make some money?” he asked. Sudip Sharma, who works at a money exchanger in Thamel, said the foreign currency they exchange are deposited later at the commercial banks using others’ passports. “This is done to exchange money at the time when the exchange rate has increased and for commission,” he explained. Hotelier in Thamel Sushant Aryal revealed that the money exchangers also exchange the foreign currency of tourists staying at the hotels. “Even I have exchanged on their behalf on many occasions. The guests do not know about the regulations and we get benefits,” he added.
Customers go to money exchangers as the commercial banks ask for documents and exchange only at the rate fixed by NRB. Chief Executive Officer (CEO) of Mega Bank Anil Shah stated that NRB should monitor even the money exchangers and take action against those violating regulations. NRB Spokesperson Bhaskar Mani Gyawali insisted that the money exchangers should function as per the circular issued by NRB and its regulations and said they will be punished if found doing anything differently. “We have also formed regulations for inspection and supervision. They will be immediately punished if found to be doing anything during inspection,” he assured.
Source: Karobar Daily, April 28th 2013
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NRB has relaxed KYC provisions for small depositors
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