Home › Circulars › RBI/2008-2009/381

Indo-Nepal Remittance: Revised Service Charges

Current · Source: Reserve Bank of India · RBI/2008-2009/381 · issued 09 Feb 2009 · ~2 min read
Quick answerRBI has revised service charges for Indo-Nepal remittances via NEFT. Originating banks can charge max Rs 5 per transaction, SBI gets Rs 20 (shared with NSBL), and additional fees apply for non-NSBL account beneficiaries. Banks must boost branch awareness.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore helps a customer send Rs 3,000 to her family in Nepal. He charges only Rs 5 as the bank's fee, and notes that since the recipient does not have an NSBL account, an extra Rs 50 will be deducted, making the total fee Rs 55. He explains the new lower charges clearly, making the customer happy.

What changed

RBI revised the service charges for the Indo-Nepal Remittance Scheme, effective immediately. The originating bank's maximum charge is now Rs 5 per transaction, aligned with NEFT. SBI will charge Rs 20 per transaction, sharing Rs 10 with Nepal SBI Bank (NSBL). For beneficiaries without an NSBL account, an additional charge applies: Rs 50 for remittances up to Rs 5,000 and Rs 75 for amounts above Rs 5,000.

What it means for you

Banks can now offer a more cost-effective remittance corridor to Nepal, with capped charges that match domestic NEFT rates. The revised fee structure aims to boost usage of the scheme, which had been low. Banks must ensure proper fee collection and pass-through to SBI, while also addressing the lack of branch-level awareness highlighted by RBI.

What you must do

Who it affects

All banks participating in NEFT, Originating branches handling Indo-Nepal remittances, State Bank of India (SBI), Nepal SBI Bank (NSBL), Customers sending remittances from India to Nepal

❓ Common questions

What is the maximum charge an originating bank can levy for Indo-Nepal remittances?

The originating bank can charge a maximum of Rs 5 per transaction, which is aligned with NEFT charges.

What additional charges apply if the beneficiary does not have an account with NSBL?

An additional charge of Rs 50 applies for remittances up to Rs 5,000, and Rs 75 for remittances above Rs 5,000.

Why did RBI revise these charges?

Usage of the Indo-Nepal Remittance Scheme was very limited, so after stakeholder discussions, RBI revised charges to make the scheme more attractive and increase adoption.

📜 Read the original circular — full text as issued by RBI
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(CO) No. 1381 /04.09.03/2008-09 February 09, 2009 Chairman and Managing Director / Chief Executive Officer of all banks participating in NEFT Dear Sir/Madam, Indo – Nepal Remittance Scheme – Revision of service charges Please refer to our circular DPSS CO No. 1740/4.09.03/2008-09 dated April 29, 2008 regarding launch of Indo-Nepal Remittance Scheme with effect from May 15, 2008 and forwarding there with Procedural Guidelines on Indo- Nepal Remittance Scheme. 2. As you are aware Indo-Nepal remittance is riding on the NEFT system. A separate transaction code i.e. 51 has been provided in the NEFT system for Indo-Nepal Remittances. It was observed that the usage of Indo-Nepal scheme was very limited. After discussion with stakeholders it has been decided to revise the service charges to be levied to customers for funds transfer from India to Nepal through Indo-Nepal remittance scheme. The revised charges are applicable with immediate effect. The details of the revised charges are as under: i. Originating bank – Maximum Rs 5/- per transaction – aligned with NEFT. ii. State Bank of India – Rs 20/- per transaction. SBI would share this Rs.20/- with NSBL at Rs.10 each. NSBL would not charge any additional amount for crediting the beneficiary, if he maintains an account with it. iii. In case the beneficiary does not maintain an account with NSBL then, an additional amount would be charged- Rs 50/- for remittances up to Rs 5,000/- and Rs 75/- for remittance above 5,000/-. 3. Originating branches of participating banks may please note to recover the entire charges and pass on the appropriate amount to SBI after retaining their share. 4. Further, it has been observed that the awareness at branch level is very inadequate on the Indo-Nepal Scheme. We, therefore, request to take necessary steps to create awareness about the scheme amongst officials manning branches as also the branch counters. Yours faithfully (K. N. Krishnamurthy) General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/381 · issued 09 Feb 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Ensure branches correctly collect and pass the Rs 20 SBI charge (with Rs 10 to NSBL) and additional fees for non-NSBL beneficiaries.
  • Launch awareness campaigns at branches to educate staff and customers about the Indo-Nepal Remittance Scheme and its revised charges.
💻 IT / Systems
  • Update your system to cap originating bank charges at Rs 5 per transaction for Indo-Nepal remittances.
📜 Compliance
  • Monitor transaction volumes to assess the impact of the revised charges on scheme usage.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All banks participating in NEFT, Originating branches handling Indo-Nepal remittances, State Bank of India (SBI), Nepal SBI Bank (NSBL), Customers sending remittances from India to Nepal), your first concrete step on “Indo-Nepal Remittance: Revised Service Charges” is: “Update your system to cap originating bank charges at Rs 5 per transaction for Indo-Nepal remittances.” (RBI issued this 09 Feb 2009).

  1. Circular: RBI/2008-2009/381 -- Indo-Nepal Remittance: Revised Service Charges
  2. Issued: 09 Feb 2009
  3. Action required: Update your system to cap originating bank charges at Rs 5 per transaction for Indo-Nepal remittances.
  4. Action required: Ensure branches correctly collect and pass the Rs 20 SBI charge (with Rs 10 to NSBL) and additional fees for non-NSBL beneficiaries.
  5. Action required: Launch awareness campaigns at branches to educate staff and customers about the Indo-Nepal Remittance Scheme and its revised charges.
  6. Action required: Monitor transaction volumes to assess the impact of the revised charges on scheme usage.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4832&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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