Before we get into the topic of current trending news of Nepalese students taking foreign currency for study in abroad, let me tell you my side of story to set the foundation for this blog. I’m a CA final student from Biratnagar and I get some amount as a stipend during my articleship period as per the rules of the Institute of Chartered Accountants of Nepal for first-year articles in Nepal.
Many people are not getting good jobs and not get paid after graduating in Nepal what they actually deserve. Like after all those years of studying, sacrificing, and grinding, the reward just doesn’t match the effort of the people. Coming into my story, my hostel fee is Rs. 11,000 and the travel costs are rising every year due to the inflation of the country. Every month, I’m spending way more than I’m getting paid as stipend. I still have to depend on my parents for managing all my expenses. I honestly feel embarrassing for not being able to cover my living cost in Nepal.
Now you might be thinking, “Why is she saying this?” Well, I have a cousin who seems to be like my twin. She’s in the U.S. now after being selected under DV lottery visa. She’s managing all her living cost by herself at USA. She is pursuing her education, doing part-time job and still manages to send money back home as a student. It’s been just two years since she left from Nepal. She’s already got an iPhone, a car, her own setup and here I am, struggling to pay my hostel fees and all other personal stuffs. Even if I complete my CA and get a job in Nepal, I am in a doubt whether I get paid as per my expectations.
Introduction
Growing Trend of Studying Abroad
There has been a significant increase in the number of Nepalese students seeking higher education abroad over the past decade. Countries like Australia, the United States, the United Kingdom, Canada, and Japan have become top destinations due to better academic opportunities, international exposure, and improved career prospects. Nearly 100,000 students are applying for student visas annually which reflects the shifting dynamics of Nepal's education landscape.
Why Foreign Currency Matters
Studying abroad requires substantial financial investment, and the ability to acquire foreign currency is very important for this process. Tuition fees, living expenses, health insurance, and travel costs must be paid in the foreign currency. This makes access to foreign exchange a critical step in a student's journey. However, in Nepal, strict currency regulations and limited foreign reserves have made this a complicated and often stressful.
Understanding Currency Regulations in Nepal
Nepal Rastra Bank's Role
The Nepal Rastra Bank (NRB) is the central authority regulating the country's monetary policy, including foreign exchange operations. It monitors the outflow of foreign currency to ensure economic stability. For students planning to study abroad, the NRB sets specific policies on how much foreign currency can be legally acquired and what documentation is needed to obtain it.
Current Foreign Exchange Rules for Students
As of now, students are permitted to exchange up to USD 2,500 during the visa application process and up to USD 12,000 annually for tuition and living expenses. These limits vary slightly depending on the country and level of education. All transactions must go through authorized banks, and the currency must be used strictly for educational purposes.
Limitations and Documentation Requirements
Students must present a valid offer letter, a visa, passport, admission fee receipts, and a bank statement to access foreign currency legally. These documents are reviewed carefully by the banks and NRB. Any mismatch or missing paperwork can delay or deny currency exchange approval, forcing many families to seek alternatives.
How Students Acquire Foreign Currency
Formal Banking Channels
Most students initially approach authorized commercial banks like Nabil Bank, Global IME, and NIC Asia to apply for foreign currency. These institutions guide students through the process but are often controlled by strict NRB limits and insufficient foreign reserves. Despite being the legal and safe route, this path is slow and often cumbersome.
Educational Loan Options
Some banks and financial institutions offer educational loans in Nepalese Rupees, which are later converted into foreign currency. These loans help bridge financial gaps for tuition and living costs. However, high-interest rates and stringent eligibility criteria mean not every student can access them.
Common Challenges in the Process
Students face several hurdles, including long processing times, bureaucratic red tape, fluctuating currency rates, and frequent rejection due to insufficient documentation or unclear policies. These challenges can cause delays in fee payments and, in worst cases, lead to visa cancellations.
Black Market & Informal Transactions
The Rise of Unofficial Channels
A black market has emerged due to increasing difficulties in acquiring foreign currency through formal channels. Unofficial money changers and online groups offer quick currency exchange services, often without proper verification. These channels operate outside NRB oversight and have grown due to demand.
Risks of Using the Informal Market
While the black market might offer convenience, it comes with serious risks. Students and families can fall victim to scams, counterfeit currency, or even legal consequences. Moreover, transactions through unofficial means can raise concerns in foreign embassies and impact visa approvals.
Government Crackdown and Enforcement
In response, the Nepalese government has intensified crackdowns on unauthorized money exchangers. NRB and law enforcement agencies have been conducting raids and increasing surveillance. However, the root causes driving people to the black market—slow banking processes and limited forex availability—still persist.
Impact on Students and Families
Financial Burden and Stress
Securing foreign currency becomes an emotional and financial burden for many families. Parents often take loans, mortgage property, or sell assets to support their children’s dreams. The anxiety of meeting currency needs adds stress to an already challenging process.
Delays in Tuition and Living Expenses
Currency delays have caused students to miss payment deadlines, lose scholarships, or defer semesters. Living abroad without sufficient funds can also lead to emotional distress, making it harder for students to focus on studies.
Real-life Stories from Affected Students
Take the example of Pratiksha, a student in Australia, who had to borrow money from friends because her bank in Nepal delayed releasing her tuition fees. Or Ramesh, studying in Canada, who ended up using an informal source to pay his college, only to later find out the currency was counterfeit. These stories highlight the need for a more efficient and secure system.
Navigating the System Effectively
Step-by-Step Guide to Currency Exchange
- Receive a confirmed offer letter from a foreign institution.
- Apply for a student visa.
- Open a foreign currency account in an authorized Nepali bank.
- Submit all required documents: offer letter, visa, passport, admission receipts.
- Request a foreign exchange recommendation letter from your bank.
- Complete NRB approval process through your bank.
- Withdraw or transfer currency as needed.
Tips for Avoiding Delays
- Double-check all documentation.
- Start the currency process early—ideally 2-3 months before travel.
- Work with experienced educational consultancies for guidance.
- Maintain a clear communication trail with your bank.
Recommended Banks and Services
While all major commercial banks offer foreign exchange services, students have reported smoother experiences with banks like Nabil, Siddhartha, and Global IME. Some digital platforms now also offer forex tracking tools and reminders.
Policy Recommendations
Streamlining the Approval Process
The NRB should consider digitizing the application and approval process for educational currency requests. Reducing paperwork and enabling online submissions could significantly cut processing times and human error.
Improving Transparency and Access
Publishing clear, updated guidelines online and offering helpline support for students would reduce confusion. Banks should also receive consistent training to ensure uniform practices across branches.
Encouraging Financial Literacy
Workshops in schools, colleges, and educational fairs should include sessions on currency regulations, planning for abroad education, and budgeting. Financial literacy helps families make informed decisions and avoid illegal alternatives.
Conclusion
A Call for Better Support Systems
Nepalese students dreaming of international education deserve a system that supports rather than hinders them. The current foreign exchange setup, while intended to protect national interests, often adds unnecessary friction to students’ journeys. With collaborative reforms, we can ease this path.
The Future of Nepalese Students Abroad
The demand for foreign education will only rise as global mobility increases. It is imperative for Nepal to modernize its currency exchange framework to keep up with the times. Doing so not only empowers the youth but also strengthens Nepal’s global reputation as a country that nurtures ambition and invests in education.