A Global Company For Bank Transfer To Nepal: Not Hundi!

Time to send money to Nepal…You find someone online..And send money over without much research…

Marel Pencev -  at MJWebs

Marel Pencev

Jan 01, 2021

You find out that your money was sent across suspiciously…

And the authorities find out…

Questions start being asked of you…

You find out the remittance provider you’ve used is Hundi. Crap!

The last couple of months has seen a steady increase in the number of bank transfers to Nepal from Australia, using the City Express Money Transfer platform. We love what we do, and we love being able to offer a solution that is fast, transparent, secure, and legal. One question we’ve noticed asked over and over, especially when our customers reach out through Whatsapp, Facebook Messenger, and even through calling us directly is, ‘are you guys legal?’. This is a very good question, and an important one too. In today’s blog, we’ll explore the background of City Express Money Transfer, and explain why we are proud to be a legal remittance company for all bank transfers to Nepal.

What is Hundi?

Let’s start by explaining what Hundi is.

Hundi is an informal way of transferring money between two parties. It is illegal as this remittance system takes place outside of banking channels, not adhering to the standards and guidelines that financial organisations are held to. Because banks aren’t used, the money is sent, all while information about the transfer is not reported and all parties involved remain anonymous. It is the act of sending money to a location through a third party businessman. The exchange rate is different than that provided by the banks. It is known that these funds are used for tax evasion and smuggling gold.

Why is Hundi bad?

Well first, it’s illegal, and for this reason, it is not the best way to send money to Nepal. The Foreign Exchange Regulation Act states that anyone who’s involved in Hundi practice must forfeit the funds and can be fined up to 300% of the total money intended for transfer. There is also the possibility of a jail sentence of up to 3 years.

Next, the Nepalese foreign exchange rates are affected, and this is impacting the foreign reserve.

Despite this, people are still attempting to game the system by taking part in Hundi practice (both facilitating the transfer, and using the service). Others are also looking at creative, yet illegal, detours around the rules. Nepali officials have released a report that highlights money being transferred from overseas to Nepal using Hundi, with counties including India, South Korea, Australia and other Western nations. In fact, in South Korea alone, it’s estimated that 70% of money transferred to Nepal is done so via a Hundi channel. Nara Bahadur Thapa, a former executive at Nepal Rastra Bank has said, ‘“There seems to be a strong network of hundi traders in Western countries”. “A lack of coordination between Nepali banks and banks in the destination countries, along with the relatively high cost involved in sending money through formal channels, is responsible for the prevalence of hundi and other informal channels to send money to Nepal.”

It is reported that some can pay $40-50 when using formal remittance channels. It can be understandable why people may think this is the best way to send money to Nepal, and can be a big driver to using Hundi. Further, most overseas migrant workers are working during business hours, and unable to complete a transfer at this time. Hundi will generally travel through faster and is available in the evenings and on weekends. It’s a lack of awareness here about what is available that pushes people to using Hundi.

Reports state that revenue from remittance makes up around 32% of national GDP. This is huge because it has assisted in reducing poverty, raising national household standards, as well as increasing household and national savings and investments. These factors are huge reasons Hundi practice must not be encouraged.

However, there is light at the end of the tunnel. Recent reports reveal that Nepalis abroad are increasingly using legal channels. We’re glad to see this shift in behaviour and hope it continues.

Who is City Express Money Transfer?

City Express Money Transfer (CEMT) is part of the prestigious group of companies; City Express Group. This global group is involved in a multitude of industries and sectors including financial services, IT, travel & tourism, trade, visa processing and retail.

CEMT has been operating in the remittance sector for over a decade. It was first established in 2007, and has powered through to today being recognised as one of the leading remittance companies in Nepal, and globally. CEMT is licensed by the Central Bank of Nepal (Nepal Rastra Bank) to legally conduct money transfer services in Nepal. There are over 7500 locations within Nepal alone. Further, CEMT covers more than 100 foreign currencies globally.

City Express Money Transfer Australia is the Australian branch of this global conglomerate, commencing operations here in 2019.

We appreciate that there is a greater need to educate migrant workers about remitting funds to Nepal. We strive to ensure we can facilitate fast and fair transfers. The CEMT Australia team works around the clock, through the evenings, on the weekends and of course during business hours. We’re ensured we’re available so you’re provided this support through a legal remittance service. We are also conscious of the cost traditionally associated with transfers to Nepal. So we addressed this with a fair and flat fee of $8 per transaction. Even better, we’ve waived the fee altogether for the next couple of weeks. We’re on your team.

To summarise.

We’re a global company operating in many industries…

We’ve been in business for over a decade…

We cover more than 100 currencies around the world…


We are licensed by the Central Bank of Nepal (Nepal Rastra Bank).

To answer the earlier question. Yes… we are legal!

And we’re proud to say that!

We say this to give you absolutely confidence that we’re legitimate, and we’re here to stay. We’re obsessed with making all bank transfers to Nepal easier than ever, and we’re continuing to build and improve the overall experience for you.

City Express Money Transfer Australia is just as committed as our partners back in Nepal, and around the globe. The current Australian HQ team have been working tirelessly guiding every single transaction and answering each enquiry.

We hope you found value in this read and also hope it gives perspective around how people around the world facilitate bank transfers to Nepal. We are certain that we have the best way to send money to Nepal. If you’re thinking about sending money to Nepal, let the City Express Money Transfer Australia team be your choice!