Payments company ItzCash has ventured into cross-border remittance service with a partnership with Prabhu Money Transfer, a remittance company in Nepal. Through this, ItzCash will allow Nepali migrants in India to send money back home through its 75,000 agent network.
Any Nepali citizen residing in India can send money through an ItzCash outlet by producing a copy of their citizenship certificate. They can also deposit money into an account maintained in any branch of Prabhu Bank or any other bank operating in Nepal in real time.
Note that the Reserve Bank of India (RBI) had announced the launch of the “Indo-Nepal Remittance Scheme” for Nepali migrants in India back in 2009. The scheme allows migrants, including those who don’t have bank accounts, to send up to Rs. 50,000.
Cross-border outward remittances to Nepal are picking up. In January, Eko, a mobile-based financial inclusion company, started remittance service to Nepal with Prabhu Money Group as well, as indicated by this Economic Times report. Eko said a remitter can do transactions of Rs 50,000 per day and is allowed up to 12 transactions in a year. A fee of Rs 150 is charged for remitting up to Rs 30,000 and Rs 200 for remitting up to Rs 50,000. In December, Oxigen started an Indo-Nepal money remittance as well in partnership with the IME Nepal.
RBI to allow wallets to make cross-border remittance
Last month, the Reserve Bank of India (RBI) opened new avenues of business. Wallets will now be able to undertake cross-border inward remittances, according to its new draft guidelines. However, the wallets need to be fully KYC compliant and issuers can enable this facility only on explicit request of the customers. To begin with, a per transaction limit of not exceeding Rs 5000 for such cross-border transactions shall apply, the RBI said. However, the maximum value in these wallets at any point of time shall not exceed Rs 50,000.