Remittance
Complete Nepal Remittance Guide 2082/83 (2026)
Latest NRB Rules | 10% IPO Quota for Migrants | Formal vs Hundi | Country Charges | SEBON Regulations
Understanding Remittance in Nepal (2082/83)
Remittance is the legal transfer of money by Nepalese workers abroad to their families or personal accounts in Nepal.
Primary Source Countries for Nepal Remittances
FORMAL REMITTANCE (LEGAL)
Money sent via Banks, Remittance Companies (IME, Prabhu), or Digital Wallets (eSewa, Khalti)
INFORMAL REMITTANCE / HUNDI (ILLEGAL)
Money transferred via unauthorized agents
Who Can Open a Remittance Account? (Eligibility Rules)
There are two distinct types of “Remittance Accounts.” It is critical to know the difference because only one gets the IPO quota.
Account Name: Remittance Savings Account (Self)
Eligibility: Any Nepali citizen working abroad with a valid Labor Permit (Shram Suikriti)
How to Open:
- FROM ABROAD: Use Video KYC (V-KYC) available in apps like Nabil Gen-N, Global Smart Plus, NIC Asia MoBank
- No branch visit required
- DOCUMENTS: Original Passport, Valid Visa, Labor Permit, Recent Photo
MAJOR BENEFIT: Eligible for 10% IPO Quota (if 50k rule is met)
Account Name: Remittance Savings Account (Beneficiary)
Eligibility: Direct family members (Wife, Husband, Father, Mother, Children) living in Nepal
How to Open: Visit a branch in Nepal
Documents Required:
- Beneficiary’s Citizenship (Nagarikta) & Photo
- Copy of Sender’s Passport & Visa
- MANDATORY: A valid Remittance Receipt (proof that money was received from abroad recently)
MAJOR BENEFIT: Gets +1% Extra Interest (e.g., if normal savings is 6%, this account gets 7%)
RESTRICTION: The family member CANNOT apply for the Migrant IPO Quota using this account
Can Family Members Open NRN Account?
- YES: Spouse can open joint NRN account with principal NRN
- YES: Children (minors) can be added as beneficiaries
- NO: Parents/siblings cannot open NRN account unless they themselves qualify as NRN
- ALTERNATIVE: Family in Nepal can receive remittances in their regular accounts
The “NPR 50,000” IPO Quota Rule (Most Crucial)
This is the most misunderstood rule. To apply for the 10% Reserved Shares in any IPO (Initial Public Offering), specific conditions set by SEBON must be met.
THE RULE:
You must have remitted at least NPR 50,000 into your own Remittance Savings Account within the last 6 months prior to the IPO application date.
Conditions for IPO Quota Eligibility
- SOURCE: The money must come from a Formal Channel (Bank/Remit Agent). Cash deposits made by family in Nepal DO NOT COUNT
- CRN NUMBER: You must have a CRN number linked to this specific Remittance Account
- DEMAT ACCOUNT: Your Demat account must be flagged as “Foreign Employment” type
- PAYMENT: The payment for the IPO share must be deducted from this specific remittance account, not a normal account
Step-by-Step IPO Quota Process
- STEP 1: Open Remittance Savings Account from abroad (V-KYC)
- STEP 2: Remit minimum NPR 50,000 via formal channel within last 6 months
- STEP 3: Open Demat account (Foreign Employment type) linked to your CRN
- STEP 4: Apply for IPO through bank/mobile app when announced
- STEP 5: Ensure payment is made from remittance account only
Benefits of Formal Remittance for IPO
Country-Wise Charges & Best Methods (2026 Data)
Charges vary by agent and exchange rate margins. Digital transfers are always cheaper than cash counters.
| Source Country | Average Cost (For NPR 100,000) | Transfer Time | Best/Cheapest Method |
|---|---|---|---|
| India | ₹100 – ₹250 (Lowest) | Instant – 24 Hrs | SBI, PNB, Everest Bank (Punjab National) |
| Qatar / UAE | 15 – 20 (QAR/AED) | 15 Minutes | IME, Al Fardan, Lulu Exchange |
| Malaysia | 10 – 15 MYR | 30 Minutes | Merchantrade, Valyou, IME |
| Saudi Arabia | 15 – 25 SAR | 1 Hour | Enjaz (Bank Albilad), Tahweel (Al Rajhi) |
| Korea | ₩5,000 – 10,000 | Same Day | GME Remit, Hanpass |
| Japan | ¥500 – 1,000 | 1 Day | Kyodai, City Express Japan |
| USA / Europe | $5 – $15 | 1 – 2 Days | Wise (TransferWise), Remitly |
| Australia | 5 – 10 AUD | Same Day | Legal Remit, AusRemit |
Digital Transfer Benefits
Top Remittance Agents (2082/83)
You do not always need to visit a bank. “Sub-Agents” (local shops, cooperatives) can also pay out money.
Top Domestic Agents (For Receiving in Nepal)
Market Share: 28%
Fees: 1.5-2.5%
Speed: Instant to 24 hours
Countries: 50+ countries
Features: Mobile wallet, bank deposit, cash pickup
Coverage: Pan-Nepal, 25,000+ locations
Market Share: 22%
Fees: 1.8-3%
Speed: Instant to 48 hours
Countries: 40+ countries
Features: Largest agent network in Nepal
Coverage: Major cities + towns
Very popular for Japan, Korea, and Saudi Arabia.
Coverage: Urban centers
Best For: East Asian countries
Specialty: Fast transfers from Japan/Korea
Best for direct-to-wallet transfers (Instant load to eSewa).
Coverage: Digital nationwide
Best For: Tech-savvy users, instant transfers
Fees: 1.2-2% (lowest for digital)
Top International Partners (For Sending)
Complete Documentation Checklist (2082/83)
- Original Passport
- Work Visa / Resident ID (Iqama/Pataka)
- Labor Permit (Shram Suikriti)
- Receiver’s Full Name (as per Citizenship)
- Receiver’s Mobile Number (Crucial for SMS PIN)
- Receiver’s Bank Account Number & Bank Name (for bank deposit)
- Optional but helpful: Salary slips, employment contract
- Control Number: The PIN code (e.g., IME Control Number, MTCN) given by the sender
- Original ID: Citizenship (Nagarikta), Passport, National ID, or Voter ID
- Mobile Phone: To receive the verification OTP
- Relationship Proof: For amounts > NPR 1 Lakh, staff may ask for relationship verification
- Additional: Recent passport-sized photos (for new account opening)
Important Notes on Documentation
What happens if I make a mistake in the receiver’s name?
The receiver cannot pick up the cash. You (the sender) must visit your agent abroad and request a “Name Amendment.” This usually costs a small fee or is free depending on the agent.
For amounts above NPR 10 lakhs: Additional documentation including source of funds declaration, tax clearance (if applicable), and bank approval may be required.
V-KYC Enabled Banks for Remote Account Opening
Process: Download app → Select “Open NRN/Remittance Account” → Complete video verification → Submit documents digitally → Account activated in 24-48 hours
Interest Rates & Tax Rules (Baisakh 2082)
(Generally 1% higher than normal savings)
(Tax-free interest in some NRN schemes)
(Final Withholding Tax on savings interest)
(Additional benefit)
| Bank | Remittance Savings | Remittance FD (1 Year) | Minimum Balance | Special Features |
|---|---|---|---|---|
| Nabil Bank | 6.50% | 8.00% | NPR 2,000 | Free remittance receipt, debit card |
| Global IME Bank | 6.25% | 7.75% | NPR 1,000 | Instant SMS alert, mobile banking |
| Prabhu Bank | 6.75% | 8.25% | NPR 500 | Zero balance after activation |
| NIC Asia Bank | 6.00% | 7.50% | NPR 1,000 | Free cheque book, online banking |
| Everest Bank | 6.25% | 7.75% | NPR 2,500 | Family banking, insurance offers |
Tax Rules for Remittance in Nepal
- NRN: Remittances to NRN accounts are completely tax-free
- FAMILY: Remittances to family (gifts) are tax-free up to NPR 50 lakhs/year
- INVESTMENT: Income from remittance investments (rental, business) is taxable
- REPORTING: Banks report all remittances above NPR 1,00,000 to NRB
- FORM: No separate tax filing needed for pure remittance receipts
- INTEREST TAX: 5% final withholding tax deducted at source for savings interest
Frequently Asked Questions (360 Degree View)
Q: Can I send money to my wife’s normal saving account?
A: Yes, but you will NOT get the +1% extra interest, and it will NOT count towards your IPO eligibility. You must send it to a specific “Remittance Savings Account.”
Q: Is Hundi safe if my friend recommends it?
A: NO. It is illegal. If the police catch the Hundi agent, your money is confiscated, and you have zero legal proof to claim it back. You also lose the chance to build a “Credit Score” for future loans.
Q: Can I take a loan against my remittance income?
A: YES. Banks offer “Foreign Employment Loans” (up to 5-10 Lakhs) without collateral if you can show a consistent history of formal remittance for 6+ months.
Q: What if I don’t have NPR 50,000 for IPO quota?
A: You cannot apply for the 10% reserved quota. However, you can still apply through the general public category, but competition is much higher (100:1 ratio vs 10:1 in migrant quota).
Q: Can family members use remittance account for daily banking?
A: YES. The remittance savings account functions like a normal savings account with all features (ATM card, mobile banking, cheques) plus the extra 1% interest benefit.
Q: What happens to my remittance if the agent goes out of business?
A: For formal channels: Your money is protected. Banks have insurance, and licensed remittance companies have collateral with NRB. For Hundi: You lose everything with no recourse.
Q: How long does it take to open a remittance account from abroad?
A: 24-48 hours via V-KYC. With apps like Nabil Gen-N or Global Smart Plus, you can complete the process remotely and start receiving remittances immediately after activation.
Formal Remittance vs Hundi – Complete Comparison
FORMAL REMITTANCE – LEGAL & PROTECTED
- LEGAL: Government approved and regulated by Nepal Rastra Bank
- RECEIPT: You get official receipt with transaction ID
- TRACKING: Can track transaction status anytime
- BANKING HISTORY: Builds credit score for future loans
- TAX BENEFITS: Eligible for tax exemptions
- FINANCIAL INCLUSION: Access to banking services
- SAFE: Money insured up to certain limits
- IPO ELIGIBILITY: Qualifies for 10% migrant quota
- INTEREST BENEFITS: +1% extra interest on savings
HUNDI – ILLEGAL & RISKY
- ILLEGAL: Criminal offense under Nepal law
- NO RECEIPT: No proof of transaction
- NO TRACKING: Cannot track if money is lost
- NO RECORD: No banking history for loans
- TAX EVASION: Can lead to penalties if caught
- FRAUD RISK: High risk of being cheated
- MONEY SEIZURE: Police can confiscate hundi money
- NO INSURANCE: No protection if agent disappears
- NO IPO: Cannot apply for migrant quota
- NO INTEREST BENEFITS: Misses out on +1% extra interest
Legal Consequences of Hundi (NRB Regulations)
Under Nepal’s Anti-Money Laundering Act, 2064 and Nepal Rastra Bank Directives:
- Up to 5 years imprisonment for hundi operators
- Confiscation of all hundi money by government
- Fine equal to double the transaction amount
- Blacklisting from all banking services for 10 years
- Criminal record affecting future visa applications
- For migrants: Revocation of labor permit and deportation risk
Why Formal Channels Are Better
- SAFETY: Your money is legally protected
- RECORD: Builds financial history for loans
- BENEFITS: Access to IPO quota and extra interest
- CONVENIENCE: Can use mobile banking, ATMs
- FUTURE: Helps in getting visas, loans, investments
- NATIONAL ECONOMY: Contributes to Nepal’s formal economy
Sending Limits & Transfer Process
Official Sending Limits (NRB Rules 2082)
Per transaction
Per transaction
Max per day (NRB Rule)
Must go to bank account
Step-by-Step Remittance Process
- STEP 1: Sender visits agent/bank abroad with documents
- STEP 2: Fills remittance form with recipient details
- STEP 3: Pays amount + fees, gets receipt with tracking number
- STEP 4: Recipient in Nepal receives SMS notification
- STEP 5: Recipient visits agent with tracking number & ID
- STEP 6: Money disbursed as cash or bank deposit
- STEP 7: Both receive confirmation SMS
Contact Information for Issues & Complaints
complaint@nrb.org.np
info@sebon.gov.np
support@imeremit.com
info@prabhuremit.com
Important Warnings
- NEVER share your Control Number/PIN with anyone
- ALWAYS verify agent credentials before transaction
- IMMEDIATELY report lost/stolen remittance documents
- KEEP all receipts until transaction is complete
- VERIFY exchange rates before sending large amounts