November 12: Nepal Clearing House Ltd (NCHL) has decided to increase the paid-up capital of the company to Rs 298 million from Rs 216 million through issuance of 38 percent bonus share from the profit earned during the fiscal year 2018/19.
The decision was taken by the company’s 8th Annual General Meeting held at Hotel Crown Imperial, Kathmandu on November 11.
The AGM also decided to provide 2 percent cash dividend to cover the tax provision. According to a statement issued by NCHL, the company recorded a net profit of Rs 237 million in the fiscal year 2018.19.
The company intends to increase its capital to further re-invest into payment infrastructures, add new products and services and to enhance risk management, the statement added.
As per the central bank’s regulatory requirement, payment system operator (PSO) needs to have minimum of Rs 100 million as paid-up capital for operations within Nepal, whereas it requires Rs 250 million for handling international payments.
During the last fiscal year, the company processed a total of 11,755,072 cheques through NCHL-ECC system; 4,931,950 transactions through NCHL-IPS system; and 186,041 transactions through connectIPS e-Payment system.
“The total settlement value of the transactions processed through NCHL systems during the fiscal year remained at Rs 9.2 trillion. It handled daily average transactions of over 67,479 equivalent to Rs 36.85 billion on daily settlement value,” the statement said.
There are almost 80 banks and financial institutions as its direct members with access to over 5,003 bank branches within NCHL’s system network. NCHL has also enrolled over 22 non-bank institutions as indirect/technical members.
Nepal Clearing House Ltd is a national clearing house jointly promoted by Nepal Rastra Bank (10 percent), banks and financial institutions (80 percent) and Smart Choice Technologies Ltd (10 percent), to establish multiple national payments, clearing and settlement systems in Nepal. It has been providing payment system infrastructure and facilitations to the BFIs, PSPs, PSOs, Govt/Semi-Govt. entities and other service providers.