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RBI has issued a circular about india and nepal financial remittance system among the citizens. RBI also gives guidelines to increase the transactions of NEFT between India and Nepal. Many Nepalese live in India and they need to sent the money to their family. Full circular of Reserve bank of India is as under.

September 29, 2011
The Chairman and Managing Director /
Chief Executive Officer of all banks participating in NEFT
Madam / Dear Sir,
Indo-Nepal Remittance System – Measures to enhance usage
This has reference to our circulars DPSS CO. No. 1764 / 04.09.003 / 2007-08 dated April 29, 2008 outlining the salient features of the captioned Scheme as well as operational instructions and DPSS (CO) NO. 1381 / 04.09.003 / 2008-09 dated February 09, 2009 indicating changes in the charges structure under the Scheme. The captioned scheme was introduced in May 2008 by Reserve Bank of India, jointly with Nepal Rastra Bank, to provide an avenue to migrant workers of Nepalese origin working in India to remit funds at regular intervals in a safe and cost efficient manner to their families in Nepal.
2.  It is disheartening to note that despite the growth in the number of NEFT-enabled branches, the volume of transactions under the Indo-Nepal Scheme has not grown as expected at the time of its launch. Though there is huge potential for such remittances through the banking channels in view of the large number of migrant population of Nepalese origin in various parts of India, the Scheme is not being used effectively as observed from the limited number of transactions effected each month. Further, only a few banks are putting in such transactions. Informal consultations with banks have revealed that one of the reasons for very low usage of the Scheme is lack of awareness among target group of customers as well as the dealing staff within banks.
3.  As indicated in the operating procedures of the Indo-Nepal Scheme, which runs on the NEFT application, certain data entry and authorisation rules have to be clearly observed at the time of input of message contents meant for Indo-Nepal Remittance. It is learnt that a large number of the already low level of transactions are getting rejected at SBI, Pooling Branch due to incorrect format / contents of the message. This may be due to the fact that the dealing officials at branch level are not fully conversant / aware of the unique features / requirements of the scheme (message format prescribed under the Scheme has some fields tagged mandatory which are not mandatory in message format for domestic remittances). Some of the common mistakes committed in data input for such transactions, leading to their rejection at SBI level, are observed to be as under:
  • Amount entered is more than Rs 50,000/- (under the Indo-Nepal Remittance Scheme the maximum permissible amount of remittance is Rs.50,000/- per transaction) – When the amount data is input (in field 4038), it should not exceed Rs.50,000/- including the commission amount. In other words, the value of actual funds remitted plus commission cannot be more than Rs.50,000/- (Note: the value entered in this field is used for settlement purposes also)
  • 3rd line of Sender to Receiver Information (Commission) - this field should contain only numbers whereas it is observed that some banks are also entering alpha characters (the commission amount has to be in numbers only as per the charges structure for the Scheme; no alpha characters should be entered in this field)
  • In field 6061 i.e., Beneficiary Customer A/ c, the account number of SBI Central Pool account (2399468044302) is only to be mentioned.  Some Banks put the actual Nepal Beneficiary A/c No.  in this field instead of 2399468044302 resulting in rejection of the message.
  • The actual beneficiary account number at Nepal, if any, is to be mentioned in field 7495 – line 4 of Remittance Information.
4.  In view of the importance accorded at the highest levels in both the countries to the issue of workers’ remittances to Nepal through banking channels, it is imperative that the Scheme functions effectively and serves the purpose for which it is intended necessitating concerted efforts at all levels. Banks are, therefore, advised to ensure the following with immediate effect:
(i) Create awareness among the branch officials about the Scheme so as to enable them to guide the target customers, many of who may be illiterate. The branch officials should be able to explain the features of the Scheme and guide them in filling up the remittance form.
(ii) Provide necessary training to the dealing officials at branch level so that they are aware of the operating procedures of the Scheme, its message structures and contents etc. We are enclosing with this circular a copy of the message format for transactions under the Scheme providing details about the fields and the information required to be filled therein. It may be stressed upon the dealing officials to exercise necessary care while making the data-entry in the system to as to avoid rejection of the message/s at SBI Pooling Branch.
(iii) To enhance its usage, it is necessary that target customers are made aware of the Scheme. To ensure this, branches, especially those situated in areas with sizeable migrant Nepalese population, may be advised to organise periodic workshops and awareness campaigns about the Scheme. Help of Nepalese workers’ associations may be solicited for wider disseminations of information about the Scheme.
5.  Please acknowledge the receipt of the circular and implementation of its contents.
Yours sincerely
(Vijay Chugh)
Chief General Manager

Outward Debit Messages from NEFT Branches IFN298N06 (as applicable for Indo-Nepal Remittances)
Field No
Field Name
Contents / Options
M2020Transaction Reference Number16xUniquely identifies the message.
O3535Batch Time4!nBatch Time.
M11065nNumber of transactions(loops) in the message
M4063Sum of Amounts19dSum of all amounts in the loops
Repeating Group Begins
M2020Transaction Reference Number16xUniquely identifies the transaction (loop)
M4038Amount19dValue of the remittance (Amt + Commission charges)
M3380Value Date8!nDate on which settlement takes place. Only the current date is valid.
M5756Sending branch’s IFSC4!a4!c[3!c]Sending branch’s IFSC.
M6305Sending Customer Account Type  Sender’s account type
Allowed values are
10 - SAVINGS BANK                          
11 - CURRENT ACCOUNT                                
13 - CASH CREDIT                                
12 - Overdraft
40 – NRE
50 – Remittance for Customer not having account in bank
52 – Card to Card Payments
M6021Sending Customer Account Number35x
  • The account number of the sender which is debited for originating the transaction, if remitter is account holder.
  • In case of cash transactions, please mention the internal account number in which funds would be credited if returned. It would be in the nature of a transit account where funds return would be retained temporarily before they are returned to the remitter.
M6091Sending Customer Account Name50x
  • Sender’s name irrespective of whether remitter is account holder or walk-in customer
M5629Sending Customer Mobile No/Email Id 3!c
Sender’s mobile number or e-mail id.
3!c should be either SMS or EML only
62z contains e-mail id or mobile number
Mobile number should be at least 10 digits
M7002Originator of Remittance4*35Cannot be left blank
Branch name may be entered here in the first line/row
(This IFSC number of SBI branch where pool account is created for Nepal remittances and must be given for all Nepal remittances.)
O6310Beneficiary Customer Account  Type2!CReceiving customer’s account type 
Allowed values are
10 - SAVINGS BANK                          
11 - CURRENT ACCOUNT                                
13 - CASH CREDIT                                
12 - Overdraft
M6061Beneficiary Customer Account Number35xENTER 2399468044302 in this field.
(This is the number of central pool account created at SBI for Nepal remittances and MUST be given for all Nepal remittances.)
* Nepal Beneficiary A/c number NOT to be written here.
Beneficiary Customer Account Name
M5565Beneficiary Customer Address4*35xBeneficiary customer address in Nepal should be entered here (at least one line content should be entered)
M7495Remittance Information      (6 lines of 35 characters each). Information has to be given in all the 6 lines as shown below
Line 1: - Beneficiary Identification Particulars

Line 2: - Contact Number of Beneficiary

Line 3: - Commission

Line 4 : -     Account Number, if customer of Nepal SBI Bank Ltd (NSBL)

Line 5: - Account Number, if customer of other bank in Nepal

Line 6: Name of the other Bank (if not NSBL)

Citizenship/ PAN card/ pass port  number of the beneficiary or 
X  if no information is available
Mobile or land line number of the beneficiary

20.00 / 70.00 / 95.00
Rs 20.00 in case beneficiary has an account with NSBL. Rs 70 or Rs.95 in other cases depending upon the amount being remitted.
Account number of customer that is to be credited if he/she is account holder in Nepal State Bank
‘X’  if cash is to be disbursed

Account number of customer that is to be credited if he/she is account holder in other bank
‘X’  if not available
Name of other bank
‘X’  if not available

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