FEFI · FOREIGNEXCHA

INDO-NEPAL REMITTANCE SCHEME

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.

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Q

What is the Indo-Nepal Remittance Scheme and under whose authority does it operate?

A

The Indo-Nepal Remittance Scheme is a cross-border money transfer facility enabling residents in India to remit funds to Nepal. It operates under the Foreign Exchange Management Act (FEMA) 1999 and guidelines issued by the Reserve Bank of India.

Q

Who launched the Indo-Nepal Remittance Scheme and in which year?

A

RBI launched the scheme in 2008 in coordination with Nepal Rastra Bank.

Q

What is the maximum amount that can be remitted per transaction under the Indo-Nepal Remittance Scheme?

A

The maximum amount per transaction under the Indo-Nepal Remittance Scheme is Indian Rupees 50,000.

Q

What is the minimum amount that can be remitted under the Indo-Nepal Remittance Scheme?

A

There is no specified minimum; even small amounts can be remitted.

Q

What is the maximum number of remittances permitted per year per remitter under this scheme?

A

A remitter is allowed a maximum of 12 remittances per year (one per month) under the Indo-Nepal Remittance Scheme.

Q

Under the Indo-Nepal Remittance Scheme, who bears the responsibility of reporting suspicious transactions?

A

The authorised dealer bank or remitting institution must report suspicious transactions.

Q

What is the aggregate annual ceiling for remittances under the Indo-Nepal Remittance Scheme?

A

The aggregate annual ceiling per remitter is Indian Rupees 6,00,000 (six lakh rupees) under the Indo-Nepal Remittance Scheme.

Q

What is the fixed exchange rate ratio between Indian Rupee and Nepalese Rupee?

A

1 Indian Rupee equals 1.60 Nepalese Rupees under the pegged arrangement.

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