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
- Update your system to cap originating bank charges at Rs 5 per transaction for Indo-Nepal remittances.
- 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.
- Monitor transaction volumes to assess the impact of the revised charges on scheme usage.
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
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.