NRB Revokes Licenses of Paywell Nepal and Sajilo Pay over Illegal Transactions

Nepal Rastra Bank (NRB) has revoked the licenses of two digital payment service providers—Paywell Nepal and Sajilo Pay Payment—after they were found to have engaged in illegal financial activities in violation of regulatory requirements.

In a statement issued on Thursday, the central bank said the licenses of Paywell Nepal Pvt. Ltd., issued on September 27, 2020, and Sajilo Pay Payment Pvt. Ltd., granted on March 30, 2021, have been cancelled for breaching the Payment and Settlement Act, Payment and Settlement Regulations, Integrated Directives on Payment Systems, and the Prevention of Money Laundering Act.

The decision was approved by NRB’s Board of Directors on Thursday, according to the statement.

The revocation follows a series of investigations that exposed widespread misuse of mobile wallets for illegal transactions such as gold smuggling, tax evasion, and unauthorised remittance activities.

A major investigation by the Central Investigation Bureau (CIB) of Nepal Police in April revealed that mobile wallets were being used to funnel foreign remittances and settle payments for illegal gold trade and smuggling. On April 28, 2025, CIB arrested 21 individuals linked to 19 companies suspected of conducting illegal transactions worth Rs 1.77 billion across 11 districts using wallet services. The arrested individuals were also found to have bypassed restrictions placed by NRB on certain remittance operators.

Investigations were launched earlier in July 2024 after allegations surfaced that wallets such as Paywell and Sajilo Pay had facilitated gold transactions worth Rs 9.6 billion through unauthorised channels. A case was filed at the Kathmandu District Court in connection with this.

Following these incidents, NRB introduced tighter regulations in December 2024 regarding the appointment of wallet company representatives to enhance transparency and prevent financial crimes. The revised directives required wallet companies to vet their authorised representatives rigorously, banning the use of sub-agents and mandating detailed disclosures and due diligence.

Currently, 26 wallet companies operate in Nepal under NRB authorization. The central bank has expressed its commitment to further tightening regulatory oversight to safeguard the integrity of the digital payment system and prevent its misuse for illicit activities.

The decision was approved by NRB’s Board of Directors on Thursday, according to the statement.