Remittance in Nepal: Importance, Economic Impact, & Current Trends For 2026
Remittance in Nepal plays an important role in supporting household incomes, strengthening financial stability, and sustaining overall economic growth. Millions of Nepali citizens working abroad regularly send money back home, making remittance inflows one of the country’s most reliable sources of foreign income. As a result, remittance has consistently contributed a significant share to Nepal’s GDP and remains a key pillar of national economic development.
In this updated 2026 guide, we provide a simple overview of remittance in Nepal, including its meaning, economic impact, contribution to GDP, advantages and uses of remittance income, current inflow trends, and an overview of leading remittance companies.
Salapa Bikas Bank
Sambriddhi Finance Company Limited
Sanima Bank Limited
Shangrila Development Bank Limited
Shine Resunga Development Bank Limited
Shree Investment & Finance Company Limited
Siddhartha Bank Limited
Sindhu Bikash Bank Limited
Standard Chartered Bank Nepal Limited
Importance of Remittance Fixed Deposit Rates
Building on the importance of remittance, many Nepali banks offer special fixed deposit schemes for remittance account holders. These remittance fixed deposit rates are generally higher than standard savings or regular fixed deposit rates, as banks aim to encourage Nepalis working abroad and their families to channel remittance income into the formal banking system. By doing so, depositors can save securely while earning better returns, and banks benefit from stable foreign-currency-backed liquidity.
In the section above, you can compare the latest 2026 remittance fixed deposit rates offered by banks and financial institutions in Nepal, helping you identify which institutions provide the most competitive returns for remittance-based savings.
Why Remittance Matters in Nepal in 2026
Remittance is more than just money sent home by Nepali workers abroad; it is a lifeline for millions of households and a cornerstone of Nepal’s economy. It provides families with funds for daily expenses, education, healthcare, and savings, helping improve living standards across the country.
At a macro level, remittance inflows contribute significantly to Nepal’s GDP, support the balance of payments, and strengthen the country’s foreign currency reserves. By fueling consumption and investment, remittance plays a pivotal role in economic development, making it one of the most stable and reliable sources of national income.
Understanding its importance also explains why banks offer remittance-focused financial products, such as higher-yield fixed deposits and savings accounts, giving families the dual benefit of financial security and better returns.
Role of Remittance in Nepal’s Economic Development
- Strengthens foreign currency reserves: Remittances provide a steady inflow of foreign currency, helping stabilize Nepal’s exchange rate.
- Reduces the balance of payment deficit: Remittance eases pressure on the national account and supports economic stability.
- Encourages investment: Many households channel remittance income into bank deposits, fixed deposits, and real estate, boosting domestic financial and property markets.
- Improves living standards: Remittances support education, healthcare, and daily expenses, enhancing the quality of life for millions of families across Nepal.
Advantages & Uses of Remittance
Remittances are a lifeline for millions of Nepali households, supporting daily expenses, education, and healthcare. They contribute about 25% of Nepal’s GDP and strengthen foreign currency reserves, making them a major pillar of the national economy.
Beyond household support, remittance income fuels savings and investment, with many families using funds for bank deposits or fixed deposits, helping build financial security. These flows also stabilize the economy by boosting consumption and sustaining overall economic development. Remittance also:
- Reduces poverty levels
- Increases household purchasing power
- Boosts investment in education and health
- Generates capital for banking deposits
- Supports rural development
Top Remittance Companies in Nepal (2026)
Nepal remains one of the world’s most remittance‑dependent economies, with remittance inflows reaching record highs, including over Rs. 1.7 trillion in the last fiscal year, and monthly inflows crossing Rs. 200 billion at times. These flows support households and the broader economy and are facilitated through both banks and licensed remittance companies.
The following remittance providers are among the most prominent in Nepal’s formal market:
- IME Limited: A leading remittance processor with extensive global partnerships and significant market share, widely used for inward transfers.
- City Express Money Transfer: Licensed by Nepal Rastra Bank and active in major overseas markets, accounting for a substantial share of inward remittances.
- Prabhu Money Transfer: A major non‑bank remittance operator focused on Gulf and Asian corridors with strong service coverage.
- Esewa Money Transfer and IME Pay: Digital‑first providers integrating remittance inflows with mobile wallets and electronic payments.
- Other licensed companies: Several remittance firms approved by Nepal Rastra Bank, including City Express, Maya Remit, Isend Money Transfer, Hub Remit, Goodwill Remit, and Prabhu Money Transfer.
These companies help millions of Nepali workers send money home through secure and regulated channels, replacing informal methods and contributing to stronger formal FX inflows that support Nepal’s financial system.