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DPSS (CO) EPPD No. 590 / 04.09.003 / 2011-12

September 29, 2011

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


M 2020 Transaction Reference Number 16x Uniquely identifies the message.
O 3535 Batch Time 4!n Batch Time.
M 1106 5n Number of transactions(loops) in the message
M 4063 Sum of Amounts 19d Sum of all amounts in the loops
Repeating Group Begins
M 2020 Transaction Reference Number 16x Uniquely identifies the transaction (loop)
M 4038 Amount 19d Value of the remittance (Amt + Commission charges)
M 3380 Value Date 8!n Date on which settlement takes place. Only the current date is valid.
M 5756 Sending branch’s IFSC 4!a4!c[3!c] Sending branch’s IFSC.
M 6305 Sending Customer Account Type Sender’s account type
Allowed values are
12 – Overdraft
40 – NRE
50 – Remittance for Customer not having account in bank
52 – Card to Card Payments
M 6021 Sending Customer Account Number 35x
  • 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.
M 6091 Sending Customer Account Name 50x
  • Sender’s name irrespective of whether remitter is account holder or walk-in customer
M 5629 Sending 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
M 7002 Originator of Remittance 4*35 Cannot be left blank
Branch name may be entered here in the first line/row
M 5569 4!a4!c[3!c] SBIN0004430
(This IFSC number of SBI branch where pool account is created for Nepal remittances and must be given for all Nepal remittances.)
O 6310 Beneficiary Customer Account  Type 2!C Receiving customer’s account type
Allowed values are
12 – Overdraft
M 6061 Beneficiary Customer Account Number 35x ENTER 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

M 5565 Beneficiary Customer Address 4*35x Beneficiary customer address in Nepal should be entered here (at least one line content should be entered)
M 7495 Remittance Information      (6 lines of 35 characters each). Information has to be given in all the 6 lines as shown belowLine 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

Repeating Group Ends


1. Mandatory fields for Nepal remittance are indicated by ‘M’ in the table above. While entering data, please ensure that data is keyed in wherever M is mentioned for fields in the above table for Indo-Nepal transactions even though the normal NEFT message format on the data-entry screen may not indicate it as mandatory field.

2. Please put X wherever information is not available

3. Please enter the data straight without any special character

4. Please be more careful while feeding data in fields 6305, 6061 and 7495. Each of the lines of the field 7495 has to be given some default value if the details are not available. No line can be left blank here.

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