BCP and problems with Unicode

If you try loading the unicode file into mssql table that's what happens:

> bcp madhu1.dbo.testunicode in "D:\testunicode.txt" -S ABCSqlSrv -U sa -P sa -f "d:\fmt.txt"

Starting copy...
SQLState = HY000, NativeError = 0
Error = [Microsoft][SQL Native Client]Unexpected EOF encountered in BCP data-file

0 rows copied.
Network packet size (bytes): 4096
Clock Time (ms.) Total : 1

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contents of testunicode.txt are :

मधुकर|pune|33
राहुल|pune|36

==========================

contents of format file fmt.txt are

8.0
3
1 SQLNCHAR 0 0 "|" 1 name SQL_Latin1_General_CP1_CI_AS
2 SQLNCHAR 0 0 "|" 2 address SQL_Latin1_General_CP1_CI_AS
3 SQLNCHAR 0 0 "\r\n" 3 age SQL_Latin1_General_CP1_CI_AS

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However, this can be avoided by using -w option and removing -f option