Kathmandu, Nepal: The long-anticipated cross-border digital payment system between Nepal and India has officially come into operation, marking a significant milestone in financial cooperation between the two countries.
The service was jointly launched on Tuesday by India’s National Payments Corporation International Payments Limited (NIPL) and Nepal’s Clearing House Limited (NCHL).
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 nations. Officials stated that the system represents a major step toward modernizing financial connectivity and reducing the costs associated with traditional cross-border transfers.
Initially, the service will be available through selected banks, with plans to gradually expand to additional financial institutions. In addition to bank-to-bank transfers, the system also facilitates person-to-person transactions, allowing Nepali travelers in India and Indian visitors in Nepal to send and receive funds conveniently.
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 advanced technology and additional services in this journey of digital payments,” he said.
Under the new system, users in both countries can send money using a mobile number, Virtual Payment Address (VPA), or UPI ID, eliminating the need to share 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 the recent visit of Nepal’s Foreign Minister, Shishir Khanal, to India, which formalized provisions for direct cash transfers between the two countries. Under the arrangement, 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.
At present, Indian visitors in Nepal can already make payments using QR codes. However, Nepali travelers in India are not yet able to use QR-based payment systems, as regulatory and technical processes on the Indian side are still pending.
