May 21. Kathmandu. Nepal Rastra Bank has banned the use of Chinese digital wallets WeChat Pay and Alipay.
This ban is on place because of the loss of foreign income the country had to suffer do to illegal use of those application by Chinese tourists.
These digital wallets were also used by Chinese tourists to pay for businesses under Chinese ownership. As a result, the services sold in Nepal are paid in China.
This also means the income Nepal makes never enters the Nepali banking sector. Further, the government has no way to track those payments leading to loss of tax.