How to Open a Remittance Account for Nepalese Working Abroad

How to Open a Remittance Account for Nepalese? – For Nepalese working overseas, investing in Initial Public Offerings (IPOs) in Nepal has become easier due to a quota mechanism implemented by the Securities Board of Nepal (SEBON). This allows Nepalese migrant workers to access a 10% reserved quota in IPOs. However, many are still confused about the process of applying for these shares. One crucial requirement is opening a remittance account. This guide will walk you through the process of opening a remittance account and applying for IPOs under the reserved quota.

Understanding the Remittance Account Requirement

A remittance account is a specialized bank account designed for Nepalese citizens working abroad. SEBON has mandated that only those with a government-approved work permit for foreign employment can apply for quota shares, and they must have a remittance account in their name.

Who Can Open a Remittance Account?

• Nepalese individuals with a valid work permit issued by the Nepali government for foreign employment.
• Those currently residing abroad for employment.
• Those still in Nepal but approved for foreign employment (with a work permit, visa, and flight ticket).

Steps to Open a Remittance Account

1. Opening a Remittance Account While in Nepal

If you are still in Nepal but have secured foreign employment authorization, follow these steps:

1. Visit a commercial bank that offers remittance account services.
2. Submit the required documents:
   • Work permit issued by the Nepali government
   • Passport with a valid visa stamp
   • Flight ticket (proof of planned departure for employment)
3. Fill out the remittance account application form.
4. Once processed, the bank will activate your remittance account.

2. Opening a Remittance Account While Abroad

If you are already working abroad, you can open a remittance account remotely:

1. Visit the official website of a Nepalese commercial bank offering remittance accounts.
2. Select the option for online remittance account registration.
3. Upload scanned copies of the required documents in PDF format:
   • Passport
   • Work permit
   • Visa stamp
4. Some banks may require details of your employer and income level.
5. Submit the form and wait for confirmation from the bank.
6. Once approved, your existing savings account (if any) can be converted into a remittance account.

3. Benefits of a Remittance Account

• Only individuals sending remittances of at least NPR 50,000 from official sources qualify.
• A 1% higher interest rate compared to regular savings accounts (current rate: 13.13%).
• Facilitates investment in Nepalese IPOs under the 10% reserved quota.

Applying for IPOs Using the Remittance Account

1. Opening a Demat Account

To apply for IPOs, you need a Demat account. Follow these steps:

1. Visit a bank or an authorized Depository Participant (DP) in Nepal.
2. Use your remittance account details to apply for a Demat account.
3. Upon approval, you will receive a CRN (C-ASBA Registration Number), which is necessary for IPO applications.

2. Registering for Mero Share

Mero Share is an online platform developed by CDSC (Central Depository System and Clearing Limited) for managing share transactions.

1. Fill out the Mero Share application form at your bank or DP.
2. Receive your Mero Share login credentials (username and password).
3. Download the Mero Share mobile app or visit the website to access your account.

3. Applying for IPOs in the Reserved Quota

1. Log in to Mero Share.
2. Navigate to the IPO application section.
3. Select the company offering shares and apply under the reserved quota.
4. Confirm your application and wait for allotment results.

Conclusion

The introduction of the 10% IPO quota for Nepalese migrant workers is an excellent investment opportunity. However, securing this benefit requires proper documentation and a remittance account. By following the steps outlined above, Nepalese workers abroad can open a remittance account and successfully invest in Nepal’s stock market.

Stay updated with the latest financial news and investment opportunities through Nepalese in UAE. If you have any questions, feel free to reach out to our team by clicking on what’s app icon for any kind of remittance services, we will connect you to the Nepalese Bank Representatives in the UAE.