Kathmandu, Jan. 9 -- The government has opened the door to foreign investors to participate in Nepal's digital payment system under a newly amended policy.

The revised guideline issued on January 5 by the central bank allows foreign direct investment in payment service providers (PSPs) and payment system operators (PSOs) of up to 15 percent of the total capital.

PSPs like eSewa, Khalti and IME Pay help merchants accept payments while PSOs are banks and non-banks that process the payments.

Nepal Rastra Bank has also allowed PSPs to merge under the new policy. "Regulations related to merger will be introduced accordingly," the central bank said.

The central bank has increased the paid-up capital requirement for firms engaged in digital ...