Enhancements to Indo-Nepal Remittance Facility Scheme
Enhancements to Indo-Nepal Remittance Facility Scheme
The Indo-Nepal Remittance Facility Scheme (Scheme) was launched by the Reserve Bank of India in May 2008 as an option for cross-border remittances from India to Nepal, with special focus on requirements of migrant workers of Nepali origin working in India. The Scheme leverages the National Electronic Funds Transfer (NEFT) ecosystem available in the country for origination of such remittances and entails a ceiling of ₹ 50,000 per remittance with a maximum of 12 remittances in a year. The beneficiary receives funds in Nepalese Rupees through credit to her / his bank account maintained with the subsidiary of State Bank of India (SBI) in Nepal, i.e., Nepal SBI Bank Limited (NSBL) or through an agency arrangement.
- A review of the Scheme has since been made and to boost trade payments between the two countries, as also to facilitate person-to-person remittances electronically to Nepal, the following enhancements are announced –
i. Increase in the ceiling per transaction from ₹ 50,000 to ₹ 2 lakh.
ii. Removal of the cap of 12 remittances in a year per remitter.
iii. As hitherto, banks shall accept remittances by way of cash from walk-in customers or non-customers. The existing ceiling of ₹ 50,000 per remittance with a maximum of 12 remittances in a year shall, however, continue to apply for such remittances.
iv. The charges for transactions up to ₹ 50,000 shall continue as provided in circular DPSS (CO) No. 1381 / 04.09.003 / 2008-09 dated February 09, 2009. For transactions beyond ₹ 50,000, the charges prescribed by SBI shall apply.
v. The banks shall put in place suitable velocity checks and other risk mitigation procedures.
- The enhancements are also expected to facilitate payments relating to retirement, pension, etc., to our ex-servicemen who have settled / relocated in Nepal.
- These directions are issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall come into effect from October 01, 2021
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