NRB Doing Homework On Remittance Through Digital Medium
May 26, 2020 | Investopaper
NRB has started homework on remittance through digital/electronic medium. Remittance inflows have been affected due to the worldwide lockdown from the Corona epidemic. That is why remittances fell by 4 percent last Chaitra alone, according to a NRB report. The rate of decline is expected to be even higher in the coming months.
When making arrangements to send remittances through digital medium, you will not have to reach the bank or remittance company, you will be able to send money at the place and time you can afford, and also the fee will be less.
Digital Medium For Remittance Transfer
Remittances through digital channels are not new. About three years ago, some remittance companies have started a system of sending remittances through wallets. At present, the same system is being used to bring it under the purview of regulation. Although about 90 percent of the remittances currently entering Nepal from Korea come through wallets. However, its share in the total remittance is negligible.
When sending remittances through digital means, the sender can send money from wherever he is. Sending money in this way gives him three options, namely wallet, cash and bank account. If the sender chooses a wallet, it can be sent through various non-banking channels licensed by NRB, including E-Sewa, IME Pay and others.
When sending remittances through digital technology, first you have to download the wallet app and open your account. When opening an account, everything including KYC should be mentioned. The details mentioned in the wallet should be linked to the bank account and telephone number attached to it. Thus, when opening an account for the first time, you have to go to the liaison office of the concerned office. Then the service providers tell you that you can send money at any time.
Due to Corona, the inflow of remittances entering Nepal in last Chaitra is negative. As corona had spread to many countries by the first week of Chaitra, there was a lockdown in those countries as well. That is why the inflow of remittances into Nepal has been negative.
In the first nine months of the current fiscal year, the country has received about Rs. 627 billion through remittances. It has decreased by 4 percent in the corresponding period of the previous year. This is the first time in a few years that remittances have declined.
