Kathmandu. The inflow of remittance to Nepal has increased by 12.6 percent in the first three months of the current fiscal year 2020-21.

As per the economic report prepared by Nepal Rastra Bank on Wednesday, Nepali workers in foreign countries have sent 258 billion 860 million rupees home. In the same review period last year, it had seen a drop of 5.1 percent.

In the first two months of the current fiscal year, 165 billion 730 million rupees entered Nepal as remittance; whereas, the third month alone saw the inflow of 93 billion 700 million rupees.

Nepali migrant workers had sent home 92 billion 700 million rupees in the first month (mid-July to mid-August) and 73 billion 30 million rupees in the second month of the current fiscal year.The remittance inflow had been high in the third month because of the Dashain, Tihar and Chhath festivals.

The number of Nepalis workers taking approval for foreign employment (institutional and individual-new and legalized) decreased by 96.8 percent in the three months of the current fiscal year. The number of Nepali workers seeking renewed entry approval for foreign employment has decreased by 78.6 percent in the review period.

It had been feared that the drop in workers going to foreign countries would adversely affect the remittance. The country, however, has not seen any such effect yet.

According to Nepal Rastra Bank, the pandemic has led to the closure of illegal hundi transactions, which in turn has diverted the flow of remittance through legal government channels only, thus increasing the remittance.