How To Transfer Money From India To Nepal Through SBI Bank? The Ultimate Guide

How to transfer money from India to Nepal through SBI bank? : Nepal SBI Bank Limited (NSBL), established as the Public Limited Company came into operation in Nepal on 7th July 1993. One of the oldest banks of Nepal, NSBl is also the first ever Indo-Nepal (India-Nepal) joint venture that is sponsored by three promoters; SBI (State Bank of India), Agricultural Development Bank Nepal and Employee Provident Fund where 55 percent of the share capital is held by State bank of India.

Similarly, the Employee Provident Fund has 15 percent of the total share capital. The rest of the share capital is allocated to the general public.  

State Bank of India has been providing management support to Nepal SBI Bank Limited through its expatriate office. Over the years, with managerial support from the State Bank of India, NSBl has become one of the leading banks in Nepal.

Read Also: How To Send Or Transfer Money From India To Nepal Through IME

It has also provided new technologies to the Nepalese market by introducing mobile banking, card services, and internet banking. NSBL has been moving forward, leading the Nepalese Banking Industry with its significant contribution to the people of Nepal and ultimately to the economic growth of the country. 

Services offered by SBI bank

NSBL provides various services to its customers. Below is the list of the services offered by the bank. 

1. Deposit and account: One of the significant functions of any bank is it allows customers to save money in the bank and provide interest. Nepal SBI Bank has different types of saving accounts including Nepal SBI premium saving account, Karnadhar Bachat Khata, Nari Bachat Khata, and many more that provides attractive interest rate.

2. Loan and advances: Nepal SBI bank provides various types of loans, including corporate loans, education loans, housing loans,s and many more. 

Below are a few of the loan and advances types that NSBl offers. 

3. Remittance services: Remittance is the money that is sent by foreign migrant workers to the home country. Sending money from one country to another is not an easy task, and doing so illegally could lead to legal proceedings. Hence, SBI provides a platform to send money from one country to another in a legal way. Below are a few of the remittance services offered by NSBL. 

• NSBL payment gateway
• Remittances from India
• Remittance to India
• Domestic Remittance
• Draft and SWIFT 
• Correspondent bank

4. Auxiliary services: Apart from account opening, remittance, and load & advances services, below are a few of the additional services that anyone can choose. 

• Mobile Banking
• D-Mat account
• Locker service
• Utility Bill Payment Service
• Insurance coverage 

These are a few of the services offered by NSBL. With the network of hundreds of branches, paying outlets, and ATM stations, NSBL has been providing banking and financial assistance to many Nepalese people also enabling them to be financial inclusion. 

Remittances from India to Nepal 

India and Nepal, being in close vicinity, have had very long and vital relations for centuries. Two countries that share the culture and traditions have a very long history in terms of trade and commerce as well. India is also Nepal one of its most extensive and important trade partners. 

Apart from that, due to the open border allowing Nepalese and Indian to move from one country to another without any passport or visa, have endorsed Nepalese to migrate to India for better job alternatives and vice versa. Nepalese have been going to India for centuries and have been providing financial support to friends and families in Nepal. 

Read Also: Best Way To Transfer Money To Nepal From India Through Bank

There are not many options for sending money from India to Nepal. However, one of the best and legal ways to send money from India to Nepal is the use of Banks. Punjab National Bank and State Bank of India are two banks that are providing remittance services to Nepal. 

Why SBI Bank for remittance?

State Bank of India, in collaboration with Nepal SBI bank, has been providing the remittance service to provide reliable, convenient, and express service. This service is directed to Nepali migrant workers living in India who need to send money or transfer money from India to friends and families in Nepal. 

The service including transferring the remittance amount to the recipient in Nepal is accessible from all branches of the State Bank of India, in India. Its significant features are:

1. Convenient and fast: Indo-Nepal remittance services offered by the SBI bank are effortless, fast, and reliable. The Remitter, or the sender of the fund as well as the beneficiary or receiver, can fully trust the bank while using its remittance services. 
2. A massive number of outlets in Nepal for payment: At present, the number of paying outlets in Nepal stands at 1365. All paying outlets have collaborated with SBI bank for successful remittance.  
3. Low Charge: The remittance charge of SBI is low that brands the SBI remittance service as the most satisfactory service. 
4. Reliable: Due to the collaboration of the two finest banks if India and Nepal to deliver the best services to their customers, the reliability of the remittance services is very high. People tend to rely on its market-leading service. 

Hence, since the SBI provides the best services to its customers which are fast, reliable, and comfortable, the remittance service of SBI has become one of the best alternatives for every Nepalese Migrant worker to send money from India to Nepal.  

How To Transfer Money From India To Nepal Through SBI Bank

SBI bank provides two types of remittance services 

1. SBi-Nepal Express Remittance
2. Indo-Nepal remittance 

1. SBi-Nepal Express remittance 

Nepal SBI and State Bank of India, in collaboration, have been providing Electronic Fund Transfer that is named SBI Nepal Express remit. It is introduced with the hope to give a fast and convenient remittance facility to Nepalese in India by expending cash to the beneficiary living all over Nepal through the EFT mechanism. 

The SBI-Nepal express remittance that is accessible from all the branches of SBI Bank in India has the following features. 

• Convenient and fast
• Credit to the receiver’s NSBL account
• Minimum charge
• In case the beneficiary does not have an NSBI account, cash is paid through any paying outlets of Prabhu Money Transfer
• A considerable number of paying outlets in Nepal 

Fee Structure 

The commission fee that the remitter is charged at SBI branches in India during remittance is of two types. The price is based on whether the beneficiary in Nepal has a Nepal SBI bank limited account or not. Below is the breakdown of the transaction fee that the remitter is charged in India. 

Remittance amount in INR	Commission: Beneficiary is NSBL account holder	Commission: Beneficiary is not the NSBL account holder
Up to INR 5000	INR 20.00	INR 70.00
From INR 5001 to INR 50000	INR 20.00	INR 95.00
More than INR 50000	NPR 1.00 per 1000 or part thereof with min 75 and a maximum of 1500 INR	INR 1.50 Per 1000 or part thereof with a minimum of 15.00 and maximum of 3000.00

2. Indo-Nepal remittance 

Considering the increasing importance of maintaining a formal remittance structure between Nepal and India, RBI in consultation with NRB has created a modality of an electronic fund transfer system. This system is specifically made to ensure safe, fast, and secure remittance from India to Nepal. 

Introduced in 2008, Indo-Nepal remittance allows the remittance route through the PSG of SBI to Nepal SBI bank limited in Nepal. This service enables the sender in India to send remittances 12 times a year to the same receiver. The sender is allowed to send a remittance of INR 50000 per transaction. 

Fee Structure 

The commission fee that the remitter is charged at SBI branches in India during remittance is of two types. The price is based on whether the beneficiary in Nepal has a Nepal SBI bank limited account or not. Below is the breakdown of the transaction fee that the remitter is charged in India. 

Remittance amount in INR	Commission: Beneficiary is NSBL account holder	Commission: Beneficiary is not the NSBL account holder
Up to INR 5000	INR 20.00	INR 70.00
From INR 5001 to INR 50000	INR 20.00	INR 95.00

Indo-Nepal Remittance and SBI-Nepal Express remittances are two types of remittance services provided by SBI Bank India. Both services are operated to provide fast, reliable, easy, and digital remittance service where the remitter, as well as the beneficiary, can easily send and collect money. 

Use of ATM 

If the sender does not wish to go through the remittance processes where various documentation requirements are to be met, the use of an ATM can be the best and the easiest way where the sender can send money.

Using ATM, the receiver in Nepal can withdraw cash from NSBL ATM booths that are deposited in the SBI bank in India. These services of the bank are envisioned to provide faster service to remitters in India who require sending money time and again and do not wish to go to the bank or paying outlets often. 

Things to consider before using the remittance service of the SBI Bank

While using the remittance service of the SBI Bank, there are various things that the remitter, as well as the beneficiary, needs to consider and get before selecting the service type. 

1. Documents 

Documents are the most important things for any transaction. Without proper credentials, the bank transaction is incomplete. State Bank of India’s use of Indo-Nepal remittance requires the sender or receiver have the following documents to be qualified for the transfer of money from India to Nepal. 

1. Identity proof: Remitter’s identity proof includes a citizenship card issued by the Nepalese government/ passport/Licence. Apart from that, the remitter should provide the certification of identification issued by the employer in India. This allows the bank to determine the remitter’s housing address in India. 
2. KYC form is to be filled according to the guidelines presented by the RBI 

2. Other information required 

Along with the documents, the mobile number, and address of the beneficiary are required. 

3. Details of sender and receiver.  

• Remitter’s details: The sender of the fund needs to provide an ID card, Citizenship certificate, name, Mobile number, ID card, Pan card, and KYC. These documents are essential for sending money from India to Nepal.  
• Beneficiary’s account maintained at Nepal SBI Bank Limited: In case the beneficiary is the account holder of Nepal SBI bank limited, SBI Bank in India must be provided with the receiver’s NSBL account number, branch where the account is created, email address, and mobile number. 

4. Transaction frequency

Before selecting the transfer mechanism, the sender needs to evaluate based on the need for transactions in a year. Since the transaction frequency is limited as per the Indo-Nepal remittance service, the sender needs to consider his/her requirement of sending money from India to Nepal per year. 

Conclusion 

Remittance is like the backbone of the Nepalese economy. While remittance helps uplift the living standard of Nepalese people, the entire economy is sustained by the vast amount of remittance that Nepal receives each year. 

Considering the importance of remittance and its contribution to the Nepalese economy, government bodies have created rules to regulate the remittance inflow in Nepal, making it legal. Banks do help in controlling the illegal flow of money from across the world to Nepal. 

India, one of the biggest sources of remittance to Nepal, has been accepting Nepalese migrant workers to live and work in Nepal. The migrant worker’s needs to provide money to their friends and families in Nepal have been fulfilled by various banking systems where the role of SBI bank is vast. 

For decades, the State Bank of India and Nepal SBI Bank have been providing remittance services to all Nepalese and Indians. With their close collaboration, a massive number of outlets experienced workforce and advanced technologies, all Nepalese, as well as Indians, are given the best remittance service.

So, if you are in India and wish to send money legally, you can visit any of the SBI banks in India and get a fast, reliable, easy, and cheap remittance service.

This article has analyzed the remittance services of SBI Nepal that are targeted at Nepalese Migrant workers who are living and working in India. You can use SBI’s remittance services for your remittance needs. 

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Author: Asmita Sharma