India, Nepal connect payment systems for instant cross-border P2P transfers
New Delhi, June 9
NPCI International Payments Limited has partnered with Nepal Clearing House Ltd. to enable a UPI-NPI payment linkage for smooth, instant person-to-person remittances between users in India and Nepal, as per a statement by NIPL.
According to the release, this collaboration will enable affordable, real-time, secure cross-border remittances between India and Nepal. "Indian and Nepalese users can now send money to Nepal using the receivers' mobile numbers or virtual payment addresses (VPAs), while Indian users can transfer funds to India from Nepal using UPI IDs," the release added.
"This partnership enables real-time, low-cost, and secure cross-border remittances between India and Nepal, allowing Indian and Nepalese users in India and Indian users in Nepal to make seamless person-to-person (P2P) transfers," the release said.
As of now, this service will be expanded to more banks to enhance accessibility across a wide range of financial entities. "Live through select banks, the service will soon be expanded to additional banks, further enhancing accessibility across a wide range of financial institutions," the release said.
The UPI-NPI linkage marks an important step in expanding financial access and strengthening digital and economic connectivity between India and Nepal. It supports the G20 vision of making cross-border payments faster, more accessible, and affordable by directly connecting the instant payment systems of both countries.
"This project aligns with the G20's goals for accessible and affordable cross-border payments, facilitating a direct connection between the fast-payment systems of both countries, thereby reinforcing the longstanding social, cultural, and economic bonds shared by India and Nepal," the release added.
NPCI further said that the service eliminates "the need to share sensitive bank account information, offering a simplified, secure, and convenient experience for users on both sides of the border."
Commenting on the development, Ritesh Shukla, MD & CEO, NPCI International, said, "We are pleased to launch a cross-border remittance link between India and Nepal in partnership with NCHL. This initiative emphasises our commitment to innovation that meets the evolving needs of global communities. By creating a real-time, affordable, and secure corridor for cross-border remittances, we are not only simplifying the remittance process for families in both nations but also promoting financial inclusion."
Incorporated in 2020, NPCI International Payments Limited (NIPL) is a wholly owned subsidiary of the National Payments Corporation of India (NPCI). On the other hand, Nepal's primary payments facilitator 3/4 Nepal Clearing House Ltd. (NCHL), is a public limited company promoted by Nepal Rastra Bank.
— ANI
Reader Comments
Very happy to see this but hope the transaction fees are reasonable. Many migrant workers send small amounts and every rupee counts. Hope the banks don't add hidden charges.
India-Nepal relationship is unique - roti-beti ka rishta hai! This UPI-NPI link is not just about money, it strengthens our centuries-old bond. Proud of NPCI for making this happen! 🇮🇳🇳🇵
Great initiative but let's be honest - Nepal's banking infrastructure isn't as robust as ours. Will this work smoothly in remote areas of Nepal where internet is patchy? Hope they've tested this properly.
As someone who sends money to my sister studying in Pokhara every month, this is a game-changer! No more standing in queues at money transfer agents. Digital India is truly reaching our neighbors too. ❤️
This is nice for families, but what about businesses? Many small traders in Uttar Pradesh and Bihar do business with Nepal. Would love to see person-to-merchant (P2M) payments enabled in the future.
As a foreigner working in Bangalore, I must say India's UPI is phenomenal. Seeing it expand to Nepal is impressive
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