KATHMANDU: Nepal Rastra Bank (NRB) has taken a policy of tightening on increasing imports by reviewing the monetary policy in the first quarter of the current fiscal year.

Intent to tighten import, NRB made it mandatory to deposit cash in the bank while opening the LC for the import of goods.

NRB has made the changes in keeping in view the pressure in the foreign currency reserves is facing due to the increasing imports.

Earlier, when opening an LC, the importer was allowed to open the LC by keeping the documents of the firm such as updated registration certificate, income tax registration certificate, along with the various forms provided by Nepal Rastra Bank and proforma invoice or contract in the bank as collateral.

The document contains the name, brand and model number of the item to be imported, the country of manufacture, unit price, quantity, deposit price, CIF, FOB, CFR document, type of payment, harmonic code of at least eight digits, name and address of importer and exporter. Details need to be disclosed as well.

Although it has been made mandatory for the importer to keep cash margin along with the said document, it is not clear how much cash margin has to be included.