A large number of Nepalese labourers, both skilled and unskilled, work in India. To facilitate a safe and cost-effective way for these migrants to remit money to their homes back in Nepal, the government has a scheme called Indo-Nepal Remittance Facility.
What’s the facility?
This facility operates on the National Electronic Fund Transfer (Neft) platform, wherein one can transfer up to Rs.50,000 to Nepal from any Neft-enabled bank branch in India. The money is given to the beneficiary in Nepalese rupees.
How does it work?
A person can walk into any Neft-enabled bank branch in India and originate transfer to a person in Nepal. The person remitting the money need not necessarily hold an account with the bank and can be a walk-in customer. However, if the remitter has an account with the bank, then there would be no requirement of fulfilling know-your-client criteria. The money by various banks is then pooled at designated State Bank of India branches in India from where it is remitted to Nepal SBI Bank Ltd in Nepal which oversees the facility there. If the beneficiary holds an account with Nepal SBI Bank, then the money will be transferred to the beneficiary’s account directly. For others, a third-party money transfer company, called Prabhu Money Transfer Pvt. Ltd, has been assigned to disburse the money to the beneficiary. The beneficiary can quote the unique transaction reference, obtained by the remitter at the time of originating the transfer, and produce a photo identity to collect the money. An originator can make 12 transfers in a year.
In case the money is not claimed by the beneficiary within a week of remittance, then the money transfer company returns the money to the originating bank branch in India. If the money transfer was done through account debit, then the money is returned to that account. If it was a cash deposit, then the remitter is contacted and the money is returned.
What are the charges?
As per Reserve Bank of India guidelines, the remittance originator bank can charge a maximum of Rs.5 from the remitter for providing this service. If the beneficiary has an account with Nepal SBI then SBI in India will charge Rs.20, else another Rs.50 will be levied for remittances up to Rs.5,000 and Rs.75 for remittances above Rs.5,000. So a minimum of Rs.25 and a maximum of Rs.100 is what the remitter will have to pay to the originator bank for each remittance. The beneficiary is not charged any fee for receiving the money.
More information about the grievance redressal process, participating bank and various other such information is available.