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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Enhancements to Indo-Nepal Remittance Facility Scheme

27-Aug-2021 | RBI/2021-2022/94 CO.DPSS.RPPD.No.S475/04.09.003/2021-22

Reserve Bank of India launched The Indo-Nepal Remittance Facility Scheme (Scheme) 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. Now, RBI has reviewed the above mentioned Scheme and the following enhancements are announced to boost trade payments between the two countries, as also to facilitate person-to-person remittances electronically to Nepal- i. Increase in the ceiling per transaction from Rs. 50,000 to Rs. 2 lakh. ii. Removal of the cap of 12 remittances in a year per remitter. iii. Banks to accept remittances by way of cash from walk-in customers or non-customers. The ceiling of Rs. 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 Rs. 50,000 shall continue as provided in circular DPSS (CO) No.1381/04.09.003/2008-09 dated February 09, 2009. For transactions beyond Rs. 50,000, the charges prescribed by SBI shall apply. v. The banks to put in place suitable velocity checks and other risk mitigation procedures.

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