Remittances and the reconfiguration of rural finance in Nepal (1900–1960)

Remittances have been a crucial component in the lives of Nepali people since the beginning of the 20th century. Despite their importance, remittances only gained the attention of scholars and policymakers towards the end of the century. More recently, remittances have become linked to the global financial inclusion agenda in what has been termed the ‘financialisation of remittances’. This article proposes a temporal and spatial shift to explore the historical antecedents of the financialisation of remittances (1900–1960) and beyond the Global North to focus on the context of rural Nepal. I investigate the role of remittances in the reconfiguration of rural finance and social hierarchies. I propose the concept of ‘debt-reign’ as a political formation that allows to analyse the links between statecraft technologies, debt and caste relations, and remittances. Drawing on document analysis, expert interviews and a focus group discussion, the article shows the transformative power of remittances to bring about: the (re)negotiation of debt relations; an emancipation from debt relations; and the reconfiguration of social hierarchies. Together, these dynamics contribute to a reconfiguration of social power, challenging the domination of certain castes and rural elites and re-stratifying financial and social hierarchies. The analysis also highlights the colonial legacies of remittances that prepared the ground to introduce formal financial infrastructure in rural areas which is fundamental to contemporary financialisation.