9. MIGRANT REMITTANCES IN NEPAL
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FIGURE 9.3 Remittances to Nepal during the Crisis, April 2007–October 2010 350
$, millions
300 250 200 150 100 April 2007
October 2007
April 2008
October 2008
April 2009
October 2009
April 2010
October 2010
Source: Nepal Rastra Bank.
of total flows to Nepal, collecting data on informal channels is important. In addition to surveys, sources that could be used to estimate informal remittances include foreign exchange bureaus, labor ministries, and embassies in destination countries. It is important for Nepal to strengthen monitoring of migration and remittance flows (including those to and from India). Improving remittance data collection and dissemination of reliable high-frequency data on remittances and their sources can allow the government to monitor remittances and be a resource for researchers and the media. This would first imply having better data on where people currently live. Although information on migration to GCC countries and to countries other than India is collected, data on return migration and sources of remittances are not available. Nepal and destination countries can cooperate to include migration questions in upcoming censuses and in destination countries to collect better data on stocks of migrants.
The Remittance Market in Nepal Many providers of remittance services in Nepal and many international and local MTOs, banks, and other institutions provide remittance services even in remote regions of Nepal. Remittances are usually delivered the same day in urban areas, within three days in rural areas, and in less than a week in remote areas. The major money transfer companies and banks have subagents that deliver remittances to recipients in remote areas. However, a majority of people do not have accounts with commercial banks. There were only 1.8 bank branches per 100,000 people in Nepal in 2006, compared with 4.7 in India, whereas ATM access is 0.28 per 100,000 people. Table 9.2 provides the typical cost of sending remittances to Nepal from different destination countries through the major money transfer companies such as Western