Friday, 1 December, 2023

Labour Minister proposes 2% higher interest on remittance


By A Staff Reporter
Kathmandu, Apr. 8: Minister for Labour, Employment and Social Security Krishna Kumar Shrestha has proposed up to two per cent higher interest rate on the remittances directly deposited in Nepal's bank accounts from abroad.

At a stakeholders' meeting held at the Ministry of Finance on Thursday, he suggested to remove service charges for sending money from abroad and establish the branches of Nepali banks in major cities or job destinations.

Suggesting various steps to be taken by the government to bring remittances to Nepal through formal channels, Minister Shrestha proposed to provide 50 per cent concession on the services provided by the state to those who send remittances through formal channels.

"It would be better to provide interest-free amount for a certain period of time equal to the amount sent to those who return to Nepal and venture abroad," he said while adding that the bank account should be made compulsory for workers going for foreign employment.

Minister Shrestha said that people should be attracted to bring in foreign currency through banking channels instead of hundi to get maximum benefit from foreign employment or remittances.
He said that the problems of lack of investble capital and foreign exchange reserves in banks would be solved if the remittances could be brought through formal channels. According to him, the state should treat the workers who have gone for foreign employment with respect, and impose a complete ban on foreign employment by any means other than these prescribed by the government.

Other proposals include honouring the individuals who send the most amount of remittance annually.