The Indo Nepal Remittance Scheme, a vital financial bridge under the NEFT ecosystem, offers a lifeline for Nepalese workers in India. Launched by the Reserve Bank of India (RBI) in May 2008, this scheme underscores a commitment to facilitating seamless, cost-effective remittances from India to Nepal. With enhancements introduced in August 2021, it now also supports trade payments and benefits for ex-servicemen settled in Nepal, showcasing its evolving nature to meet diverse needs.
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Key Features and Limits – Indo Nepal Remittance Scheme
This scheme allows individuals to remit up to ₹2 lakhs per transaction, provided they hold an account with any NEFT-enabled bank in India. For those without a bank account, up to ₹50,000 can be remitted per transaction, with a yearly cap of 12 transactions. This flexibility caters to both banked and unbanked populations, ensuring wider accessibility.
Beneficiary Account Requirements
Remarkably, beneficiaries in Nepal are not mandated to have a bank account. The partnership with Nepal SBI Ltd. (NSBL) and Prabhu Money Transfer facilitates cash delivery, making the scheme inclusive for recipients across Nepal. This approach addresses logistical challenges in remote areas, ensuring that remittances reach intended beneficiaries efficiently.
Documentation and KYC Compliance–Indo Nepal Remittance Scheme
The scheme emphasizes simplicity and security. Account holders in India can remit without additional documentation, adhering to KYC norms seamlessly integrated into the NEFT system. Non-account holders need to provide basic identification documents, ensuring a smooth and compliant transaction process.
Transaction Process and Timelines–Indo Nepal Remittance Scheme
Transactions initiate from any NEFT-enabled bank branch in India, converging at a designated SBI branch before being securely transmitted to NSBL in Nepal. The clear, streamlined process underscores the scheme’s efficiency, with provisions ensuring recipients can access funds promptly or have them returned to the sender if unclaimed.
Charges and Fees–Indo Nepal Remittance Scheme
The scheme is designed to be cost-effective, with nominal charges for transactions up to ₹50,000, and reasonable fees for higher amounts. This pricing structure is pivotal in making remittances affordable for migrant workers, fostering financial inclusion.
Grievance Redressal – Indo Nepal Remittance Scheme
A robust grievance redressal mechanism is in place, with detailed contact points for NEFT Customer Facilitation Centres and the RBI’s NEFT Help Desk. This ensures that users have access to support and assistance, enhancing trust in the scheme.
Frequently Asked Questions (FAQs)
1. What is the Indo-Nepal Remittance Facility Scheme?
The Indo-Nepal Remittance Facility Scheme is a cross-border remittance service allowing individuals to transfer funds from India to Nepal. Launched by the RBI in 2008 and enhanced in 2021, it facilitates secure, cost-efficient remittances for Nepalese workers in India, supporting trade payments, pension, and other benefits for individuals relocating to Nepal.
2. How much money can I remit under the scheme?
Individuals can remit up to ₹2 lakhs per transaction if they have an account with any NEFT-enabled bank in India. For walk-in customers or non-customers, the limit is ₹50,000 per transaction, with a cap of 12 remittances annually.
3. Do beneficiaries in Nepal need a bank account?
No, it’s not mandatory for beneficiaries in Nepal to have a bank account. The scheme facilitates cash delivery through Nepal SBI Ltd. (NSBL) and Prabhu Money Transfer, ensuring that beneficiaries can receive funds even in remote areas.
4. What documents are required for remitting funds?
Account holders in India do not need to provide additional documents. Non-account holders must present valid identification, such as a Passport, PAN, Driving License, or an employer-issued Certificate of Identification, adhering to KYC requirements.
5. How long does it take for a transaction to complete?
Transactions are processed similarly to NEFT transactions within India, with the added step of pooling at an SBI branch before being sent to NSBL in Nepal. The timeline for completion depends on the processing time of each bank and the time it takes for beneficiaries to claim the funds at Prabhu Money Transfer locations.
6. What are the charges for using this remittance service?
For transactions up to ₹50,000, the originating bank may charge a maximum of ₹5 per transaction, with SBI charging ₹20, shared with NSBL. Charges for transactions above ₹50,000 follow SBI’s prescribed rates, ensuring affordability.
7. How can remitters find out about NSBL branches and Prabhu Money Transfer outlets?
Information on NSBL branches and Prabhu Money Transfer outlets is available in the Procedural Guidelines for the Indo-Nepal Remittance Facility Scheme and at NEFT-enabled branches in India. This information helps remitters understand where beneficiaries can collect funds.
8. What happens if the remittance is not delivered to the beneficiary?
Undelivered remittances are returned to the originating bank branch through the NEFT system. The bank then communicates with the remitter for refund procedures, ensuring that funds are safely returned.
9. Who can I contact for grievances related to the remittance?
For grievances, customers can contact the NEFT Customer Facilitation Centre of the originating bank or SBI. If issues are not resolved satisfactorily, the RBI’s NEFT Help Desk is available for further assistance.
10. Are bi-lateral arrangements between banks in India and Nepal covered under this scheme?
No, bi-lateral arrangements between banks or non-banks for cross-border transactions are not covered under the INRF Scheme. This scheme exclusively uses the NEFT ecosystem for remittance to Nepal, ensuring standardized procedures and security.
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