Calls to legalise remittance channels, promote digitisation

KATHMANDU: Stakeholders have emphasised the need to legally channelise remittances and collaborate further to digitise this sector, ensuring the sustained improvement observed in remittance flows.

During a workshop organised by Nepal Remitters Association (NRA) in collaboration with Nepal Rastra Bank (NRB) in Kathmandu on June 17, 2024, stakeholders highlighted the importance of enhancing remittance services while considering the positive impact of remittances on the economy.

Addressing the workshop, NRB Acting Governor Neelam Dhungana Timsina, noted that remittance inflows are increasing and play a crucial role in economic improvement. She also emphasised the importance of legal remittance channels and digitalisation, with the central bank ready to cooperate with the NRA.

Similarly, Tulashi Prasad Ghimire, Executive Director of the NRB's Foreign Exchange Management Department, urged remittance organisations to engage in healthy competition and renew licences promptly for regular business operations. The NRB is committed to supporting the development and facilitation of the remittance sector.

Ram Bahadur Manandhar, Executive Director of the NRB's Non-Bank Financial Institutions Supervision Department, advised remittance companies to operate within the framework of rules and regulations specified by the central bank. He also addressed current remittance-related issues.

NRA President Chandra Tandan emphasized that healthy competition among remittance companies, banks, and financial institutions (BFIs) working on remittances would lead to increased remittances, foreign exchange reserves, and income for these entities. He stressed the need for collective attention to achieve these goals.

NRA Vice President Ritesh Mittal and General Secretary Sanjaya Sigdel also shared their perspectives on current challenges in remittance services.

During the event, NRA's immediate past NRA President Suman Pokharel discussed the current state of remittances and potential improvements by remittance companies and regulatory bodies.