Remittances up almost 24%, but fewer new workers are leaving as the central bank mops up surplus cash

Nepal's remittance income rose 23.9 per cent in the first two months of the 2026/27 fiscal year, even as the number of first-time labour permits fell, a combination that matters both for households abroad sending money home and for the banking system receiving it.

According to Nepal Rastra Bank (NRB) data, remittances totalled Rs436.36 billion in the first two months of the fiscal year, which began in mid-July. The second month alone brought in Rs221.31 billion. That implies a year-earlier total of roughly Rs352 billion (NepalUK's calculation from the reported growth rate).

Fewer new workers, more returning ones

The same report shows final labour approvals for foreign employment fell to 78,320 from 90,198 a year earlier, a decline of about 13 per cent. Re-entry approvals, for workers who go back to jobs they already hold abroad, rose to 52,163 from 45,884, about 14 per cent higher. The figures suggest that income is being driven by workers already abroad rather than by a wave of new departures. The data alone cannot explain why. Possible factors include wage levels, exchange rates, formal transfer channels and destination-country demand, but none is established by this release.

The central bank steps in today

On 29 October (Kartik 12, 2083) NRB planned to withdraw Rs150 billion in surplus cash from the banking system using its deposit collection instrument. Bids are submitted through the bank's online bidding system, which closes at 3pm Nepal time, and interest rates are set by competitive bidding. Commercial banks (Class A), development banks (Class B) and finance companies (Class C) can take part. The bank's stated aim is to maintain monetary stability.

NepalUK's reading, which is editorial inference and not a statement by NRB, is that strong inflows are a likely contributor to the abundance of cash in banks, since remittances are deposited into the domestic system. The central bank has not said so in the material reviewed.

What it means for UK-based Nepali families

Most UK Nepali households send money through regulated transfer firms or bank transfers. Strong formal remittance volumes are good for Nepal's foreign-exchange position, but they carry risks: if surplus liquidity pushes down returns on deposits and encourages speculative lending, households may see little benefit. Readers should compare transfer fees and exchange rates, and use only licensed providers; NRB publishes daily exchange rates on its website.

Caveats

The remittance data comes from a monthly NRB report as relayed in news coverage and the NRB report itself was not opened. The liquidity operation figure is from a single secondary source quoting NRB, and the operation's final result had not been published at the time of writing. Whether the Rs150 billion was fully subscribed is not yet known.