Labor Ministry makes a slew of recommendations to increase remittance inflow through formal channels

Published On: April 8, 2022 11:19 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 8: The Ministry of Labor, Employment and Social Security (MoLESS) has put forth a number of recommendations to encourage remittance inflow through formal banking channels.

Addressing a program organized in Kathmandu on Thursday, Minister for Labor, Employment and Social Security Krishna Kumar Shrestha said Nepalis working abroad should be lured to send money back home through formal channels by using banking channels. More remittance would ensure adequate foreign exchange reserve and sufficient capital in the banks, he added.

Minister Shrestha argued that the state should treat the migrant workers in a dignified manner to receive remittance through formal channels, end the remittance cost and establish branches of Nepali banks in the major cities of the labor  destination countries.

Additional two percent interest rate should be given to the depositors in case they directly remit money in Nepal's bank account and the returnee migrants should be waived off in taxes for their in-kind remittance if they submit evidence of formal channel for remitting their income, Minister Shrestha suggested.

The provision of depositing money in the foreign employment welfare fund for taking labor approval for remigration should be waived off if the migrant workers submit evidence of remitting money through formal channels. 

The other proposals made by Minister Shrestha include felicitating those sending the highest amount of remittance, ensuring interest-free loan to the returnee migrants for the entrepreneurship development in the country upon their return home and making mandatory provision for the migrant workers to open bank accounts.


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