Remittances to Nepal: RBI hikes per transaction cap to Rs 2 lakh from Rs 50,000
The RBI created the Indo-Nepal Remittance Facility Scheme in May 2008 as an option for cross-border remittances from India to Nepal, focusing on the needs of Nepali migrant workers working in India.
The Reserve Bank of India raised the limit on remittances from India to Nepal from Rs 50,000 to Rs 2 lakh on Friday, making it easier for veterans living in the neighboring nation to receive retirement and pension payments. Furthermore, the central bank has lifted the 12-remittance limit per remitter every year.
“Banks will continue to accept cash remittances from walk-in clients and non-customers as they have in the past. The Rs 50,000 per remittance limit, with a maximum of 12 remittances per year, will remain in effect for such remittances, “In a circular, the Reserve Bank of India (RBI) stated.
The plan makes use of the country’s NEFT ecosystem to facilitate the origination of such remittances, with a limit of Rs 50,000 per remittance and a maximum of 12 remittances per year.