India and Nepal have launched a peer-to-peer cross-border remittance mechanism linking their digital payment systems, allowing citizens of both countries to transfer money in real time.
The system became operational on June 6, the Finance Ministry said on Thursday.
It establishes a direct connection between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI). Users can send money through mobile banking applications and digital wallets.
Technical integration completed by NIPL and NCHL
The linkage was implemented through cooperation between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
According to the Finance Ministry, the arrangement is aimed at improving convenience for travellers and businesses while supporting digital and economic integration between the two countries.
In a statement, the ministry said the UPI-NPI linkage represents “a major advancement in financial inclusion” and supports efforts to provide accessible, safe and affordable cross-border payments.
It added that the initiative reinforces the longstanding social and economic ties between India and Nepal.
Key features
The new mechanism is expected to:
- Enable real-time peer-to-peer money transfers.
- Allow transactions through mobile banking apps and digital wallets.
- Reduce the need for physical currency exchange.
- Remove the need to carry large amounts of cash.
- Help users avoid unfamiliar foreign exchange procedures.
Support for merchants
The ministry said the linkage could provide an economic boost for businesses in Nepal.
Nepalese merchants are expected to gain access to a large number of Indian visitors, which could lead to higher transaction volumes.
UPI footprint expands abroad
With Nepal included, UPI is now accepted in nine countries:
- Singapore
- United Arab Emirates
- France
- Mauritius
- Nepal
- Bhutan
- Qatar
- Sri Lanka
- Cambodia
The network allows Indian travellers to make payments overseas using familiar digital platforms.
TL;DR:
India and Nepal have launched a cross-border remittance system linking UPI and NPI. The mechanism enables real-time money transfers through mobile apps and digital wallets and is intended to improve convenience for travellers and businesses.
AI summary:
- India and Nepal operationalised a UPI-NPI remittance linkage on June 6.
- Users can make real-time transfers through banking apps and digital wallets.
- NIPL and NCHL carried out the technical integration.
- The system aims to improve convenience and strengthen digital integration.
- UPI is now accepted in nine countries.
