KATHMANDU, Dec 15 (Reuters) - Nepal will allow foreign banks to operate branches in the Himalayan nation, opening up its financial sector to foreign players as part of its commitment to the WTO, a senior central bank official said on Tuesday.
"Any foreign bank wanting to open its branch in Nepal will be allowed to do so with a minimum capital of $30 million from January 2010," Trilochan Pangeni, Executive Director of the central Nepal Rastra Bank, told Reuters.
Impoverished Nepal joined the World Trade Organisation in 2004 but is yet to open its telecom, financial and insurance sectors to foreign players.
"This is the beginning of the opening of our service sector to foreigners," Pangeni said.
"It will raise the competition, bring technology and management skills to Nepal."
So far foreigners were allowed to invest in Nepali joint venture banks. Nepal has more than two dozen commercial banks. (Reporting by Gopal Sharma; Editing by Bappa Majumdar and Jerry Norton)