Laxmi Bank announces online remittance service

Laxmi Bank has announced the launching of its internet based online remittance service branded as "Laxmi Bank – eXpress Money Transfer" (eMT) to facilitate transfer of money from abroad and between various points within Nepal.

The new service called eMT has been developed in-house by Laxmi Bank and is in line with the Bank's technologically driven business model, states a press release by the bank. "Beneficiaries of remittances made through eMT can avail money within minutes of the transfer having been effected at the remitter's end."

"Laxmi Bank eMT has been designed especially to facilitate remittances for the "unbanked" or beneficiaries who do not have bank accounts - either because they do not fulfill a Bank's criteria for opening an account or do not have physical access to a Bank branch. eMT is operated through the internet and funds are collected and paid out by appointed agents of Laxmi Bank."

As per the National Planning Commission, the number of Nepali household receiving remittances has increased from 23% to 53% between 1995 and 2004. Reduction in poverty level during the same period from 42% to 31% is mainly a direct result of the workforce remittances received by the poorest section of the Nepali society. The statistics from Nepal Rastra Bank reveals that the Nepali economy in 2004/05 earned over USD 922 million in remittance from overseas workers-accounting to 12.4 percent of national GDP.

"The above statistics reveals the importance of workforce remittance to Nepal and hence the need to streamline the fund transfer process through legal banking channel. Laxmi Bank expects the eMT to play a significant role in diverting fund transfers from the high risk informal middleman process ("hundi") to formal banking channels, thereby protecting the consumer as well as benefiting the country's economy as a whole," adds the release.

Laxmi Bank eMT will first be used in Malaysia where Laxmi Bank has tied up with Merchantrade Asia Sdn Bhd, a Malaysian company with an established track record in the communications sector in Malaysia and other parts of the world. nepalnews.com sd Feb 14 07