Nepal Rastra Bank (NRB) has introduced strict regulations for the appointment and oversight of official representatives of payment service provider (wallet) companies. This move follows investigations revealing that representatives of Paywell and Sajilo Pay wallets were involved in large-scale transactions linked to gold smuggling and illegal hundi operations. To address these concerns, the central bank amended the Integrated Payment System Directive, 2080, tightening appointment criteria.

Under the new directive, wallet companies must collect detailed documentation when appointing official representatives. This includes the professional and personal details of the operator, company registration certificates, permanent account numbers, and citizenship documents. Representatives must also provide a police report confirming a clean criminal record, a self-declaration of no involvement in money laundering or terrorist financing, and proof of not being blacklisted.

The directive also prohibits wallet companies from appointing agents or sub-agents apart from their designated official representatives. Existing arrangements with unauthorized agents must be revised or terminated within three months. Additionally, wallet companies are required to take full responsibility for the transactions conducted by their representatives and must publish an updated list of official representatives on their websites monthly.

Authorized representatives are allowed to perform specific transactions, including depositing or withdrawing cash into wallets or prepaid cards, facilitating bill payments for utilities and government services, providing wallet balance and transaction details, updating customer information, and opening accounts.

To regulate transaction costs, the NRB has set service fees for transactions handled by official representatives. A fee of Rs 5 will be charged for transactions up to Rs 5,000, Rs 15 for those between Rs 5,000 and Rs 15,000, Rs 25 for transactions between Rs 15,000 and Rs 25,000, and Rs 10 for wallet-to-bank transfers.

At present, 26 wallet companies operate in Nepal under the authorization of NRB. These regulatory measures aim to enhance transparency and accountability in the digital payment ecosystem while preventing its misuse for illicit activities.