By A Staff Reporter
Kathmandu, June 10
A good amount of remittance money, which occupies about 17 per cent of Gross Domestic Products of Nepal, enters into the nation from Europe, but a large chunk of such money is received through improper and illegal channel, known as the hundi system.
A preliminary report showed that the nation has been suffering a loss of about 50 million rupees in revenues on monthly basis only from the money remitted to Nepal from the United Kingdom, owing mainly to the hundi system.
In the hundi system, a person or a group sends their money to their kith and kin staying back in Nepal not through proper banking or other recognised channels but through another persons or groups.
And as a result, the hard currencies being sent through the hundi, known in India as hawala system, is utilised by the persons or groups who are to provide the money to the families back in Nepal. Instead of providing the accurate amount of money in return to what they have got in hard currencies, they actually hand over the amount of money to the families fixing lower exchange rate.
Likewise, the hard currencies being sent through hundi are ultimately accumulated at the hands of few businessmen who use this money to their own benefit. It has thus caused the massive loss of revenues to the government while the hundi system has encouraging many businessmen to do illegal import of goods.
Rajaram Giri, the director of SAMSARA, UK, stated that approximately 180 million Great Britain Pounds are being sent to Nepal by about one-hundred thousand Nepalese currently staying working in the UK.
"The hundi system has caused a massive loss of revenues to the nation as the hard currencies sent from the UK through this system fail to reach the nation," said Giri at a press meet. "Almost 80 per cent of total money sent to Nepal is sent through hundi system," Giri said.
He, however, added that only the remittance money is being sent from the Gulf countries are received in Nepal through legal banking channel.
Stressing on the need on the proper and legal banking channel to receive remittance money from the UK, Giri said that the government of Nepal must work effectively to discourage the hundi system. "The government must enact and enforce effective laws and regulations in this regard only then the hard currencies sent into the nation could be received properly."
Giri’s SAMSARA, UK is the first institution established in the UK with the sole motive to provide banking facilities to the Nepali living there, he said. According to Giri, his organisation does not charge any commission or service money from the Nepalese willing to remit their money to Nepal. The money in Nepal can be received from SAMSARA’s associate partners- Kumari Bank and Nepal Investment Bank.
Meanwhile, Giri, also the editor of Himalayas Nepal, a tourist magazine published from the UK, said that apart from creating awareness against the rampant hundi system, he was also involved in promoting tourism for Nepal.
He said that his association was actively involved in making the Nepal Tourism Year 2011 a grand success in the UK. " If the necessary tourism infrastructures are build in time, then we can easily bring in one million tourists in the nation during 2011," he added.