KATHMANDU, June 10: The long-anticipated cross-border digital payment system between Nepal and India has officially come online, with India’s National Payments Corporation International Payments Limited (NIPL) and Nepal’s Clearing House Limited (NCHL) jointly launching the service on Tuesday.
The initiative integrates India’s Unified Payments Interface (UPI) with Nepal’s National Payment Interface (NPI), enabling real-time, secure, and low-cost remittances between the two countries. Officials said the system marks a significant step toward modernizing financial connectivity and reducing the costs associated with traditional cross-border transfers.
Initially available through select banks, the service will gradually expand to additional institutions. Beyond bank-to-bank transfers, the system also facilitates person-to-person transactions, allowing Nepalis traveling in India and Indian visitors in Nepal to send funds conveniently.
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NCHL Chief Executive Officer Nilesh Man Singh Pradhan confirmed the successful launch of real-time cross-border transfers. “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, Indian and Nepali users can send money using a mobile number, Virtual Payment Address (VPA), or UPI ID, eliminating the need to exchange sensitive bank account details. The process is designed to be simple, secure, and user-friendly.
The integration is being hailed as a milestone in promoting financial inclusion and strengthening economic and digital ties between the two neighbors. By lowering transaction costs and improving transparency, the system is expected to benefit individuals and families who rely on cross-border remittances.
The launch follows an agreement signed during Nepal’s Foreign Minister Shishir Khanal’s recent visit to India, which formalized provisions for direct cash transfers between the two countries. Under the new rules, Indian residents can remit up to INR 15,000 per transaction, while Nepali residents can transfer up to NPR 200,000 per month to India.
Currently, Indian visitors in Nepal already enjoy the facility of making payments via QR codes. However, Nepali travelers in India remain unable to use QR-based payments there, as regulatory and technical processes on the Indian side are still pending.
