Nepal and India have officially launched their long-awaited cross-border digital payment system, with National Payments Corporation International Payments Limited (NIPL) and Nepal Clearing House Limited (NCHL) jointly rolling out the service on Tuesday.
The initiative links India’s Unified Payments Interface (UPI) with Nepal’s National Payment Interface (NPI), enabling real-time, secure, and low-cost money transfers between the two neighboring countries.
Real-Time Transfers to Modernize Financial Connectivity
Officials said the integration represents a major milestone in strengthening financial connectivity and reducing the costs associated with conventional cross-border remittance channels.
Initially, the service will be available through selected banks and will gradually be expanded to more financial institutions.
Besides bank-to-bank transactions, the platform also supports person-to-person transfers, allowing Nepalis traveling in India and Indian visitors in Nepal to send and receive money conveniently.
Transfers Through Mobile Number or UPI ID
NCHL Chief Executive Officer Nilesh Man Singh Pradhan confirmed the successful launch of the real-time transfer system.
“We are committed to working together to expand access and engage millions of individuals and businesses in both countries by introducing the latest technology and additional services in this journey of digital payments,” he said.
Under the new arrangement, users in both countries can transfer money using:
- Mobile numbers;
- Virtual Payment Addresses (VPAs); or
- UPI IDs.
This eliminates the need to share sensitive bank account details and makes transactions simpler, safer, and more user-friendly.
Boost for Financial Inclusion and Economic Ties
The integration is being viewed as a landmark development for promoting financial inclusion and deepening economic and digital cooperation between Nepal and India.
By lowering transaction costs and enhancing transparency, the system is expected to benefit migrant workers, travelers, and families that depend on cross-border remittances.
Transaction Limits Set
The launch follows an agreement reached during the recent visit to India by Nepal’s Foreign Minister Shishir Khanal, which formalized provisions for direct cash transfers between the two countries.
Under the new framework:
- Indian residents can remit up to INR 15,000 per transaction; and
- Nepali residents can transfer up to NPR 200,000 per month to India.
QR Payment Facility Still Pending for Nepali Travelers
Indian visitors in Nepal currently enjoy the convenience of making payments through QR codes.
However, Nepali travelers in India are not yet able to use QR-based payment systems, as the required regulatory approvals and technical arrangements on the Indian side are still pending.
The launch of the UPI-NPI linkage marks a significant advancement in South Asia’s digital payment ecosystem and is expected to further strengthen trade, tourism, remittances, and people-to-people ties between Nepal and India.
