The Indo-Nepal Remittance Facility Scheme (INRF) facilitates seamless and cost-effective money transfers from India to Nepal. Introduced by the RBI (Reserve Bank of India) in 2008, this scheme has become a lifeline for Nepalese migrant workers in India, enabling them to send remittances home safely and efficiently.
In this blog, we will explore the features, process, and benefits of the Indo-Nepal Remittance Facility Scheme and explain how it works to support Nepalese families relying on financial support from abroad.
Table of contents
- What is the Indo-Nepal Remittance Facility Scheme?
- Key Features of the Indo-Nepal Remittance Facility Scheme
- Maximum Amount Under the Indo-Nepal Remittance Facility Scheme
- Maximum Transactions Under the Indo-Nepal Remittance Facility Scheme
- How the Indo-Nepal Remittance Facility Scheme Works
- Documents Required for the Indo-Nepal Remittance
- Benefits of the Indo-Nepal Remittance Facility Scheme
- Transaction Charges for Indo-Nepal Remittance Facility
- Steps for Grievance Redressal for Indo-Nepal Remittance
- FAQs on Indo-Nepal Remittance Facility Scheme
What is the Indo-Nepal Remittance Facility Scheme?
The Indo-Nepal Remittance Facility Scheme is a cross-border initiative designed to enable migrant workers or employees in India to send remittances to their families in the region of Nepal. By leveraging India’s NEFT (National Electronic Funds Transfer) system, this scheme offers a secure, low-cost, and convenient option for remitting funds.
The scheme has undergone significant improvements since its inception in 2008, including an enhancement in 2021 to facilitate trade payments and support pensions for ex-servicemen in Nepal.
Key Features of the Indo-Nepal Remittance Facility Scheme
The Indo-Nepal remittance facility scheme allows for one-way remittances from India to Nepal only, ensuring a streamlined process for sending money home. The scheme has several notable features that make it accessible and beneficial for both remitters and recipients:
- No Bank Account Required: The scheme allows individuals to send money without having a bank account in India. Walk-in customers can deposit cash at designated bank branches, making the process accessible for everyone.
- Beneficiary Flexibility: Recipients in Nepal are not required to have a bank account. While having one simplifies fund access, alternative arrangements are made through money transfer services to provide cash directly.
- Secure Transaction Process: Funds are transferred via the National Electronic Funds Transfer (NEFT) system, ensuring a reliable and efficient remittance process.
- Low Transaction Fees: The scheme offers affordable charges. Transfers from NEFT-enabled branches typically cost between INR 5 and INR 75, depending on the amount sent.
- Multiple Transactions Allowed: Remitters are permitted to conduct up to 12 transactions per year, allowing flexibility for regular or emergency fund transfers.
- Quick Delivery of Funds: Remittances are processed promptly, with funds usually reaching the recipient within a few hours or by the next working day.
- Grievance Redressal Mechanism: For any issues related to transactions, senders can seek assistance through the respective banks or escalate concerns to the Reserve Bank of India (RBI) for resolution.
These features ensure the Indo-Nepal Remittance Facility Scheme is an efficient, accessible, and customer-friendly option for cross-border fund transfers.
Maximum Amount Under the Indo-Nepal Remittance Facility Scheme
The Indo-Nepal Remittance Facility Scheme defines specific limits on the maximum amount that can be remitted per transaction. These limits differ based on whether the sender is an account holder or a walk-in customer. The table below outlines the maximum amount allowed for each category:
| Category | Amount Limits |
| Account Holders in India | Up to INR 2 lakh per transaction |
| Walk-in Customers (Non-customers) | Up to INR 50,000 per transaction |
Maximum Transactions Under the Indo-Nepal Remittance Facility Scheme
The frequency of transactions under the scheme is determined by the sender’s status. Account holders can send unlimited remittances, while walk-in customers have a limit on the number of transactions they can make per year. The table below provides details on the transaction frequency:
| Category | Frequency |
| Account Holders in India | No limit on the number of transactions |
| Walk-in Customers (Non-customers) | Maximum of 12 transactions per year, with an INR 50,000 limit per transaction |
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How the Indo-Nepal Remittance Facility Scheme Works
The Indo-Nepal Remittance Facility Scheme (INRF) operates efficiently by simplifying the transaction processes, requirements, and disbursement procedures in Nepal. Understanding how foreign remittance works within this framework helps users navigate the system with ease. The scheme’s structure ensures that funds are transferred smoothly, making it accessible for both account holders and walk-in customers.
- Initiation in India: Remittances are initiated through any NEFT-enabled bank branch in India.
- Transfer to Nepal: The funds are electronically transferred to the Nepal SBI Ltd. (NSBL) account of the beneficiary. If the payment-receiving beneficiary does not hold a bank account, the funds are received via Prabhu Money Transfer.
- Disbursement in Nepal: Once the transfer is received, the beneficiary can collect the funds in cash or have them credited to their bank account.
Timeframe: The transfer process generally takes 24 hours, ensuring prompt delivery of funds.
Documents Required for the Indo-Nepal Remittance
The Indo-Nepal Remittance Facility Scheme simplifies the remittance process, but specific documentation is required depending on the remitter’s status. These documents are necessary to ensure compliance and smooth processing of remittances between India and Nepal.
The following outlines the documentation requirements depending on whether the remitter is an individual or a different type of entity:
- For Account Holders in India: No additional documentation is required.
- For Walk-in Customers (Non-customers):
- The KYC (Know Your Customer) process needs to be completed.
- The remitter must provide identification documents like a passport, PAN card, or driving license.
- The remitter must also provide details of the recipient in Nepal, such as address and phone number.
Benefits of the Indo-Nepal Remittance Facility Scheme
The Indo-Nepal Remittance Facility Scheme provides various advantages, such as cost-effective remittance options, flexibility regarding the requirement of a bank account, and convenient accessibility for users. Let’s explore each of these benefits in detail.
- Cost-Effective Remittances: With charges as low as INR 5 per transaction, the scheme offers a highly economical way to send money to Nepal compared to traditional money transfer services.
- No Bank Account Requirement: The scheme allows beneficiaries to receive funds in cash if they do not have a bank account in Nepal, making it highly inclusive for those without formal banking access.
- Increased Accessibility: Since the service operates through widely available NEFT-enabled bank branches across India, migrant workers can easily access the facility.
Transaction Charges for Indo-Nepal Remittance Facility
The Indo-Nepal Remittance Facility Scheme is known for its low charges, but it’s important to understand the details of the transaction charges, including the Transaction Amount, Charges by the Originating Bank, Charges by SBI, and Additional Charges for Non-SBI Beneficiaries. Let’s review these charges in the table below:
| Transaction Amount | Charges (Originating Bank) | Charges (SBI) | Additional Charges (for Non-SBI Beneficiaries) |
| Up to INR 50,000 | INR 5 per transaction | INR 20 per transaction | – INR 50 for amounts ≤ INR 5,000, – INR 75 for amounts > INR 5,000 |
| Above INR 50,000 | As per SBI’s prescribed charges | INR 20 per transaction | Same as above |
These charges are minimal, making it an affordable choice for both remitters and recipients.
Steps for Grievance Redressal for Indo-Nepal Remittance
Once a remittance is initiated, the Unique Transaction Reference (UTR) number provided allows the remitter to track the progress of the transfer. This ensures transparency and gives peace of mind to the sender.
In the event that the funds are not collected within a week, they will be returned to the originating branch.
If any issues occur during the remittance process, there are clear steps for grievance redressal:
- Contact the NEFT Customer Facilitation Centre (CFC) at the originating or receiving bank.
- If unresolved, reach out to the RBI’s NEFT Help Desk via email at [email protected].
These support channels ensure that both remitters and recipients have the necessary resources to resolve any issues quickly.
The Indo-Nepal Remittance Facility Scheme is a vital tool for migrant workers in India to support their families in Nepal. By providing a secure, cost-effective, and user-friendly platform for transferring money, the scheme bridges financial gaps for many individuals and families.
Whether you’re a migrant worker or a recipient in Nepal, the INRF makes sending money easier, faster, and more accessible. With low transaction fees, no mandatory bank accounts, and robust support systems, the scheme continues to empower countless Nepalese migrants across India.
FAQs on Indo-Nepal Remittance Facility Scheme
The Indo-Nepal Remittance Facility (INRF) is a system designed for cross-border money transfer, enabling fund transfers from India to Nepal via the NEFT network. This one-way remittance service is managed by the State Bank of India (SBI) for the Indian side, while in Nepal, funds are disbursed by Nepal SBI Bank Limited (NSBL) or its authorized money transfer agents.
Remittances in Nepal are processed through Nepal SBI Bank Limited (NSBL) branches and its authorized money transfer agents, as authorized by Nepal Rastra Bank. Currently, NSBL operates through 17 branches, while Prabhu Money Transfer Pvt. Ltd. acts as a designated agent, operating at 280 locations across the country.
The maximum limit for remittances under the Indo-Nepal Remittance Facility is Rs 2 lakhs per transaction for customers with accounts. Walk-in or non-customers can remit up to INR 50,000 per transaction.
Yes, multiple transactions can be initiated. However, a maximum of 12 NEFT transactions can be made in a calendar year for each customer.
The documents required for remitting money through the INRF include proof of identity, such as a Passport, PAN card, Driving License, Telephone Bill, or a Certificate of Identification from the employer. Additionally, the sender must provide the beneficiary’s address and phone number in Nepal.
If the beneficiary holds an account with NSBL, the remittance is credited directly to their bank account. If not, NSBL disburses the funds through Prabhu Money Transfer Pvt. Ltd., and the beneficiary must visit the local money transfer company branch, providing the Unique Transaction Reference (UTR) number and a photo identity document (usually the Nepal Citizenship Certificate).
For transactions up to INR 50,000, the charges are:
– INR 5 per transaction by the originating bank
– INR 20 per transaction by State Bank of India (SBI), which is shared equally between SBI and NSBL
– If the beneficiary does not have an account with NSBL, additional charges of INR 50 (for amounts up to INR 5,000) or INR 75 (for amounts above INR 5,000) apply.
If the beneficiary does not approach the money transfer company within a week of the transaction, the money transfer company will arrange for the remittance to be returned to the originator.
The location and addresses of NSBL branches and Prabhu Money Transfer agents are available in the Procedural Guidelines for the Indo-Nepal Remittance Facility Scheme on the Reserve Bank of India (RBI) website.
The maximum amount allowed under the Indo-Nepal Remittance Scheme (INREMIT) is set at INR 25,000 per day, per person (remitter) when remitting from BC (Business Correspondent) locations. This limit ensures controlled and secure transactions under the scheme.
For remittances to Nepal, the fee is INR 1.50 for every INR 1,000 or part thereof, with a minimum charge of INR 150 and a maximum cap of INR 3,000.
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