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UnionPay gets license of payment system operator in Nepal

Source: Xinhua| 2019-07-24 00:26:40|Editor: Shi Yinglun
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KATHMANDU, July 23 (Xinhua) -- Nepal's central bank has provided a license for payment system operator to Chinese company--UnionPay International to provide its services in Nepal.

Over a phone with Xinhua on Tuesday, Chita Mani Siwakoti, deputy governor of Nepal Rastra Bank, central bank of the Himalayan country, confirmed the issuance of license to the Chinese company. After getting the license, the Chinese company can provide electronic card network and card clearing services, among others.

Chinese Ambassador to Nepal Hou Yanqi made public the license provided to UnionPay on her twitter account on Tuesday, congratulating the Chinese company for obtaining the "first" payment system operator license for an international company. "We expect and encourage more Chinese companies to come to Nepal to conduct business under the premise of compliance," she wrote on twitter.

"This license has been issued by exercising power of Payment and Settlement Act, 2019 to UnionPay International Company Limited, registered at Shanghai Administration for Industry and Commerce, Shanghai China," the Nepali central bank has stated in the licence.

Nepal Rastra Bank said the license has been provided in accordance with the Licensing Policy for Institution/Mechanism Operating Payment Related Activities, to carry out "Electronic Card Network and Payment Switch" related activities under the direction, terms and conditions issued by the Nepali central bank.

Nepali central bank has already provided such license for four domestic companies--Prabhu Technology, Nepal Clearing House, SmartChoice Technologies and Nepal Electronic Payment Systems.

Former Executive Director of central bank Bhisma Dhungana told Xinhua on Tuesday that the entry of UnionPay in Nepal could benefit all Nepali banks . "As it is popular in China and Asian countries, international payment through it will be easier."

Ashoke Rana, chief executive officer of Himalayan Bank, which has been issuing Yuan-based UnionPay Travel cards on behalf of Chinese company, said that the entry of the Chinese company in payment service would be helpful for clearing electronic payments of Chinese tourists in Nepal. As of April 2019, China is the largest contributor of foreign tourists in Nepal by sending 70,640 visitors.

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