Strengthening Nepal’s economy: City Express chief leads push to formalise remittances

KATHMANDU: Efforts to formalise Nepal’s remittance sector are gaining momentum under the leadership of Chandra Tandan, Managing Director of City Express Money Transfer and President of Nepal Remitter's Association (NRA). Tandan has been credited with steering billions of rupees away from informal "Hundi" channels and into the formal banking system, a shift officials and industry leaders say is strengthening the country’s economic foundations.

Citing data from Nepal Rastra Bank (NRB), Tandan said remittances rose by 25% in the first half of the current fiscal year 2025/26, signalling notable resilience and growth despite global economic uncertainty. He attributed earlier slowdowns after the Covid19 pandemic to a temporary “setup period” for newly deployed migrant workers and expressed optimism about continued increases as labour approvals climb.

“Workers generally start sending money home from the third month after deployment,” Tandan said, underscoring expectations that remittance volumes will keep rising as more Nepalis go abroad for work.

A central focus of Tandan’s work has been combating illegal Hundi transfers. He identified three main drivers that sustain informal channels: undervaluation of imports used to settle trade gaps, illegal quota payments demanded by some manpower agencies, and criminal networks exploiting returning workers to smuggle gold. Tandan argued that enforcement alone will not solve the problem and emphasised the need to make formal channels more attractive.

To encourage migrants to use formal banking and licensed money transfer operators, Tandan has lobbied successfully for several government-backed incentives. These measures include 10% IPO quota reserved for documented migrant workers and an additional 1% interest on fixed deposits for funds sent via formal channels. He also proposed future perks such as 50% discounts on passport renewals and re-entry labour approvals for documented remitters.

“The contribution of migrant workers to our economy is much higher than that of foreign tourists; they should be honoured and given extra privileges at our arrival points,” Tandan said, calling for recognition and practical benefits for the country’s remitters.

Chiranjibi Adhikari, Senior Vice-President of  Federation of Computer Association Nepal (CAN Federation), recently praised Tandan’s role in the transformation, saying his vision has been “instrumental in building a robust digital remittance ecosystem in Nepal.”

Since its launch in July 2007, City Express Money Transfer has shifted from a traditional remittance operator to a digital-first service provider. Tandan said Nepali remittance companies now match international standards with instant account credits and advanced digital wallets. Looking ahead, he set an ambitious target, “Our objective is to become a digital bank within the next five to 10 years,” a move he said would integrate insurance, branchless banking, and fintech services into everyday financial life for Nepalis.

Despite progress, Tandan warned that policy instability remains a significant challenge. He cited a recent abrupt suspension of domestic remittance services that affected some 30,000 sub-agents, and urged regulators to favour KYC-based monitoring over blanket bans to protect livelihoods and maintain industry momentum.

Under Tandan’s leadership, proponents say the remittance sector is moving towards greater transparency, digitalisation, and productive use of funds. By channelling remittances into education and investment, Tandan believes Nepal can convert the long-standing phenomenon of labour migration from a “brain drain” into a sustainable “brain gain” that supports the nation’s long-term prosperity.