Changes to Regulations Impact Nepalese Wise Users: Alternatives for USD Transfers to Local Banks

In our constantly evolving world, changes are inevitable, and this is no different in the world of finance. Recently, as announced by customer support at Wise (formerly TransferWise) and confirmed through discussions with banking officials, increased regulations now limit the ability of Nepalese Wise users with addresses in Nepal to withdraw US dollars (USD) to local bank accounts. While these new restrictions pose certain limitations, several alternatives have been brought to light that offer viable routes to circumvent the issue.

The primary alternative involves utilizing the SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfer method. By choosing the option ‘International Same Currency’ transfer in your Wise account, you can wire funds from Wise directly to local bank accounts in Nepal. Although this method incurs fees associated with SWIFT transfers, it is designed to be reliable and efficient.

Another option is to take advantage of international connections. Users can transfer funds to an overseas friend or family member, then get it relayed to their local account. While this method has proven successful, it does come with additional legal hurdles, as the recipient may need to verify the extra income and account for tax implications. This makes it most suitable for occasional transfers rather than a regular transaction method.

A third solution utilizes the Payoneer platform. Payoneer allows for the transfer of USD balance from Wise to your Payoneer account, after which users can withdraw funds to their local bank accounts through the Payoneer app or dashboard. This process has proven to be both successful and fairly quick, with a transfer from Payoneer to a local bank usually fulfilling in less than two hours.

Although Payoneer is fast and reliable, users need to be aware of two potential drawbacks. The transfer rate is marginally lower than using Wise, with users reportedly losing around Re 1-1.5 per USD in comparison. Furthermore, if transactions fail, refunds may take an extended length of time.

Nevertheless, there are advantages to using Payoneer. Besides quick transfers, users can also order a Payoneer Master Card which opens additional possibilities for financial transactions.

For users with a Prepaid Dollar Card, one additional and important benefit of a SWIFT transfer is that the annual limit can increase significantly, from USD 500 to USD 5000.

Understandably, the new regulations have placed limitations on the traditional ways of transferring USD to local banks for Nepalese Wise users. However, through alternatives like SWIFT transfers, help from friends and family, and the use of other platforms like Payoneer, different avenues have opened up to bridge this limitation while maximizing your financial transactions seamlessly.

Photo Courtesy: Wise.com


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