Key facts
- India and Nepal launched a cross-border remittance mechanism on June 6.
- The system connects India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI).
- This allows for real-time money transfers through mobile banking applications and digital wallets.
- The initiative aims to improve convenience for travelers and businesses, and foster financial inclusion.
- NPCI International Payments Limited and Nepal Clearing House Limited executed the technical integration.
India and Nepal have launched a peer-to-peer cross-border remittance mechanism, establishing a direct link between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI). The system, operational since June 6, enables citizens of both nations to conduct real-time money transfers through mobile banking applications and digital wallets.
The finance ministry stated that this initiative enhances convenience for travelers by reducing the need for physical currency exchange and foreign exchange fees. It is also expected to benefit local merchants in Nepal by providing immediate access to Indian visitors, potentially increasing transaction volumes.
The technical integration was facilitated through a collaboration between NPCI International Payments Limited (NIPL), the international arm of India's National Payments Corporation, and Nepal Clearing House Limited (NCHL). The ministry highlighted that the UPI-NPI linkage represents a significant advancement in financial inclusion, strengthening economic and digital ties between the two countries and aligning with regional goals for accessible cross-border payments.