Sending Money to Nepal: The Remittance Laws (2025 Guide)

Sending money home? The daily limit is now NPR 25 Lakhs. Learn about the legal channels, the Hundi ban, and the new incentives for IPOs.

Remittance: The Backbone of Nepal’s Economy

Remittance isn’t just money; it’s 25% of Nepal’s GDP. Recognizing this, Nepal Rastra Bank (NRB) has updated the Foreign Exchange Regulations 2025 to make legal transfers easier and illegal transfers harder.

1. The “Hundi” Trap

Let’s start with what NOT to do.

What is Hundi? Giving cash to an agent abroad (e.g., in Korea) who asks his partner in Kathmandu to give cash to your family. No bank is involved.
The Law: Hundi is Illegal under the Foreign Exchange Act.
The Risk: If caught, both the sender and receiver lose the money, face fines (3x the amount), and jail time. Plus, your money has zero legal guarantee.

2. Legal Channels & New Limits (2025)

Daily Limit: You can now receive up to NPR 25 Lakhs per day via remittance companies (increased from 20 Lakhs).
Who can send? Any Nepali working legally abroad via Western Union, IME, MoneyGram, or Bank Transfer (SWIFT).

3. Incentives for “Legal” Senders

The government holds distinct rewards for using banking channels:

IPO Quota: 10% of all Initial Public Offerings (IPO) are reserved exclusively for migrant workers who send money legally.
Higher Interest: Banks offer 1-2% Extra Interest on Remittance Savings Accounts.
Social Security: Eligibility to join the Social Security Fund (SSF) for pension and insurance.

4. Sending Money OUT of Nepal (Reverse Remittance)

This is strictly restricted. Capital Account Convertibility is not allowed.

General Rule: You cannot send money from Nepal to buy a house or stocks abroad.
Exceptions:
- Students: Can send tuition fees + living expenses (No Objection Letter required).
- Travelers: Up to $3,000 per visit (boosted from $2,500).
- Medical: As per hospital requirements.

Conclusion

Using “Hundi” to save a few rupees on fees puts your hard-earned money at risk. Stick to the white channels—the government is literally paying you (via interest and IPOs) to do it legally.

Disclaimer: Financial regulations are set by Nepal Rastra Bank and updated via circulars.