Considering the importance of establishing a formal remittance system between India and Nepal, the modalities of an Electronic Funds Transfer System have since been worked out by Reserve Bank of India (RBI) in consultation with Nepal Rastra Bank(NRB). The system is designed to ensure faster remittances from India to any part of Nepal with safety and security. The salient features of the remittance system are as under.

• The Scheme is introduced on 15.05.2008
• The remittances will be routed through the Payment System Group (PSG) of State Bank of India (SBI) in India and Nepal SBI Bank Ltd (NSBL) in Nepal.
• 44000 branches of Indian Banks on Core Banking Platform linked to NEFT system of RBI are enabled to process the remittances.
• The maximum amount of remittance under the scheme will be INR.50000/-
• The commission on such remittances is kept very low. Up to INR5000/- the commission will be at INR70/- and above INR.5000/- the commission amount will be at INR95/-.
• Commission of only INR20.00 per remittance up to INR 50,000.00 will be charged in case of A/C holder at Nepal SBI Bank Ltd.
• Other than NSBL account credit the cash remittances will be handed over to the Money Transfer Agency appointed by the NSBL (Prabhu Money Transfer).