India to Nepal Money Transfer: Everything You Need to Know! Step-by-step guide to transferring money from India to Nepal exploring fees, security measures, and delivery timing.

India to Nepal Money Transfer
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Ever needed to send some cash to friends or family in Nepal? Maybe your sibling who works in Delhi needs some rent money sent back home, or you want to treat your cousins in Kathmandu to a celebratory dinner. Whatever the reason, transferring money from India to Nepal is very easy and convenient. This guide will walk you through the different ways for India to Nepal money transfer, the things to consider, and how to get the best deal.


Why Transfer Money to Nepal?

There are several reasons why people might need to send money from India to Nepal:

Supporting loved ones: Many Indian citizens have family members residing in Nepal. Sending money can help cover their living expenses, education, or medical needs. Or even sending birthday money to a nephew in Kathmandu.

Business transactions: The close proximity and economic ties between India and Nepal facilitate frequent business transactions. money transfer is the lifeblood of business transactions between the two countries.

Tourism: Nepal is a popular tourist destination for Indians. People might need to transfer funds to cover their travel expenses.

Education: Some Indian students choose to pursue their education in Nepal. Their families might need to send them money for tuition and living costs.

Also Read: 5 Tips to Recover Money Transferred to a Wrong UPI Address

transfer money from india to nepal online
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Popular Methods for India to Nepal Money Transfer

Several methods are available for transferring money from India to Nepal. Here’s a breakdown of the most popular options:

1. Indo-Nepal Remittance Facility (INRF)

Indo-Nepal Remittance Facility (INRF): Imagine you need to send some emergency cash to a relative in Kathmandu. INRF might be the perfect choice due to its speed and affordability. This is a special program created by the Reserve Bank of India (RBI) to facilitate easy and affordable money transfers between the two countries. Through INRF, you can transfer money directly to a bank account in Nepal or have it delivered as cash to your beneficiary. There are limits on how much you can send per transaction (₹2 lakhs for bank account transfers and ₹50,000 for cash pickups) but you can make up to 12 transactions in a year.

Source: RBI – Reserve Bank of India

Benefits of INRF:

  • Fast and secure transfers.
  • Competitive exchange rates.
  • Convenient for both account holders and non-account holders of Indian banks.

Transaction Limits:

  • Account holders with NEFT-enabled banks in India can transfer up to ₹2 lakhs per transaction.
  • Walk-in customers (without a bank account) can send up to ₹50,000 per transaction.
  • There’s a yearly limit of 12 transactions for non-account holders. (Source: Reserve Bank of India: rbi.org.in)
Reserve Bank of India

How to Send Money from India to Nepal through Indo-Nepal Remittance Facility (INRF)

Sending money to Nepal through the Indo-Nepal Remittance Facility (INRF) is straightforward. Here’s a step-by-step guide:

Eligibility:

You must have an account with an Indian bank enabled for NEFT (National Electronic Funds Transfer).

Step-by-Step Process

  1. Choose a Participating Bank: INRF is available through select banks in India. Ensure your bank participates in the INRF program.
  2. Visit the Bank: Head to your bank’s branch or use its online banking platform.
  3. Initiate the Transfer: Inform the bank that you want to send money to Nepal using the INRF.
  4. Provide Recipient Details: Furnish the recipient’s details, including their name, address, and bank account information in Nepal.
  5. Select Transfer Method: Choose between transferring funds directly to the recipient’s bank account in Nepal or opting for cash pickup.
  6. Verify Transaction Limits: Check the maximum amount allowed per transaction and the yearly transaction limit set by INRF.
  7. Confirm and Complete: Review the transfer details, including fees and exchange rates. Once satisfied, confirm the transaction and complete the transfer.
  8. Receive Confirmation: Upon successful completion, you’ll receive a confirmation of the transfer. The recipient in Nepal will either receive the funds in their bank account or be able to pick up the cash, depending on the chosen transfer method.
  9. Track the Transfer: Some banks offer tracking services, allowing you to monitor the status of your transfer until it reaches the recipient.
  10. Notify the Recipient: Inform the recipient in Nepal about the transfer details, including any reference or transaction numbers provided by the bank.

Remember to keep any transaction receipts or confirmation emails for your records. If you encounter any issues or have questions, don’t hesitate to reach out to your bank’s customer service for assistance.

2. Bank Transfers

Direct bank transfers allow you to send money from your Indian bank account to the recipient’s bank account in Nepal. This method allows you to send large sums directly to your recipient’s bank account in Nepal, ensuring a secure transfer.

transfer money from india to nepal online by Bank Transfers
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Process:
Initiate the transfer through your bank’s online platform or branch.
Provide the recipient’s bank details, including account number and bank identifier code (BIC).

Fees:
Be aware of potential fees associated with international bank transfers, which can include transaction charges levied by both the sending and receiving banks.


3. Money Transfer Operators (MTOs)

These are specialized companies that handle international money transfers. Popular options include Western Union, MoneyGram, and Ria Money Transfer. MTOs typically offer fast and convenient service, but their fees can also vary depending on the amount you’re sending and the transfer speed you choose.

Things to Consider When Choosing a Money Transfer Service

When choosing a money transfer service, keep these important factors in mind:

Transfer fees: Compare the fees charged by different providers before making your decision. These fees can eat into the amount your recipient receives, so it’s important to find a cost-effective option.

Transfer speed: How quickly does your recipient need the money? Some services offer same-day transfers, while others might take a few business days.

Exchange rate: The exchange rate determines how many Nepalese rupees (NPR) your recipient will get for your Indian rupees (INR). Look for a service that offers a competitive exchange rate.

Convenience: How easy is it to use the service? Consider factors like online accessibility, branch network (if applicable), and customer support.

Money Transfer Operators to send money from India to Nepal
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How to Transfer Money from India to Nepal Online?

Transferring money from India to Nepal online has become convenient with the advancement of digital payment systems. One of the most common methods is through bank transfers or specialized remittance services. Banks such as State Bank of India (SBI), ICICI Bank, Everest Bank and HDFC Bank offer international money transfer services that allow you to send money to Nepal from India securely.

Additionally, several online money transfer platforms and fintech companies facilitate cross-border transactions between India and Nepal. These platforms often provide competitive exchange rates and low transfer fees, making them a preferred choice for many individuals and businesses.

4. Mobile Wallets & Apps

The growing popularity of mobile wallets and apps has extended to international money transfers. Some services allow users to send money directly to mobile wallets in Nepal, offering a fast and potentially cost-effective option.

Ease of Use:
Mobile wallets and apps can be convenient for users comfortable with online transactions.

Limited Availability:
Not all mobile wallet providers offer international money transfer services. Ensure compatibility between the sender’s app and the recipient’s receiving option in Nepal.

Understanding Fees and Transfer Limits

Money Transfer Charges:

  • Transaction fees: These can be charged by the sending bank, receiving bank, or money transfer service.
  • Exchange rate margins: Some platforms apply a margin on the exchange rate, impacting the final amount received by your beneficiary.

Transfer Limits:

  • Limits vary depending on the transfer method and service provider.
  • The INRF scheme allows transfers of up to ₹2 lakhs per transaction for bank account holders and ₹50,000 for walk-in customers.
  • Money transfer services may have their own limits.

India to Nepal Money Transfer Time

The time taken to transfer money from India to Nepal varies depending on the chosen transfer method and service provider. Bank transfers may take anywhere from 2 to 5 business days to reflect in the recipient’s account, while some online platforms offer instant or same-day transfers for an additional fee.

India to Nepal Money Transfer Time
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It’s advisable to check the estimated transfer time provided by the selected service provider before initiating the transaction to ensure timely delivery of funds.

Choosing the Right Money Transfer Method

The ideal method for sending money from India to Nepal depends on your specific needs. When choosing a money transfer service, it’s important to weigh several factors:

  • Transfer Speed: If speed is critical, consider INRF or money transfer services known for fast processing times.
  • Fees: Compare transaction fees associated with each method to find the most cost-effective option.
  • Convenience: Evaluate the ease of use for both you (sending) and the recipient (collecting).
  • Recipient Location: If your recipient lacks a bank account, money transfer services with widespread agent locations might be a better option.

Things to Know Before Transferring Money

Before initiating your India to Nepal money transfer, ensure you have the following information:

  • Recipient Details: Full name, bank account details (if applicable), and purpose of transfer (if required by the service).
  • Transaction Limits: Be mindful of the maximum limits set by your chosen transfer method.
  • Exchange Rates: Understand how exchange rates will affect the final amount received by your recipient in Nepal. Fluctuations in exchange

Exchange Rates: Fluctuations in exchange rates can impact the final amount received in Nepal. It’s wise to check the prevailing exchange rate before finalizing your transfer.

Safety Tips for India to Nepal Money Transfer

When transferring money internationally, security is paramount. Here are some safety tips to follow:

  • Use Reputable Services: Only utilize well-established and reputable money transfer services with a strong track record.
  • Verify Recipient Information: Double-check the recipient’s name and account details to avoid errors and ensure the funds reach the intended person.
  • Beware of Scams: Be cautious of unsolicited offers or deals promising exceptionally low fees. If something seems too good to be true, it probably is.

To Sum Up

Sending money from India to Nepal has become easier and more convenient than ever. With various methods available, you can choose the option that best suits your needs – considering factors like speed, cost, convenience, and recipient location. By following the tips outlined above, you can ensure a safe and efficient money transfer experience.

Additional Resources

Reserve Bank of India: Reserve Bank of India: rbi.org.in
List of NEFT-enabled banks in India: You can find this information on the website of your respective bank or the National Payments Corporation of India (NPCI): National Payments Corporation of India: npci.org.in

Remember: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research and compare fees and exchange rates before choosing a money transfer service.

FAQ

Can I Google pay from India to Nepal?

Yes, you can use Google Pay to send money from India to Nepal! This became possible due to an agreement between India and Nepal to enable cross-border payments using UPI (Unified Payments Interface). You’ll need an Indian bank account and phone number linked to Google Pay. There might be service fees involved, so check Google Pay’s terms and conditions for details.

Can I transfer money from SBI India to Nepal?

You can easily send money to people who have accounts with SBI Nepal in Nepal. It’s called Direct Credit mode. They offer low rates for sending money and you can trust their service. You can give instructions to send money anytime, day or night. To use this service, you just need to register once with the Exchange Companies.

Can we do NEFT to Nepal?

The Indo-Nepal Remittance Facility (INRF) helps send money from India to Nepal. It’s a one-way system where people in India can transfer money to Nepal. This happens through the NEFT system. The State Bank of India takes care of the part in India and ensures the money reaches its destination in Nepal.

Does UPI work in Nepal?

The NPCI mentioned that people in Nepal can now use UPI to make payments. With UPI, users can scan QR codes to pay Nepalese shopkeepers, according to an official statement.

Does Indian debit card work in Nepal?

In Nepal, all cards can be used, but you can’t pay bills in US dollars with them. They work okay if you’re paying in Indian rupees or the local currency.

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