The National Payments Corporation of India's international arm, NPCI International Payments Limited (NIPL), has partnered with Nepal Clearing House Ltd. (NCHL) to establish a Unified Payments Interface (UPI) and National Payment Interface (NPI) linkage. This collaboration facilitates seamless, instant person-to-person (P2P) remittances between users in India and Nepal, as per an official statement.
Key Features of the UPI-NPI Linkage
According to the release, the partnership enables affordable, real-time, and secure cross-border transfers. Indian and Nepalese users can now send money to Nepal using the recipient's mobile number or Virtual Payment Address (VPA). Similarly, Indian users in Nepal can transfer funds to India using UPI IDs. The service eliminates the need to share sensitive bank account information, offering a simplified and secure experience.
Expansion Plans
The service is currently live through select banks but will soon be expanded to additional financial institutions, enhancing accessibility across a wide range of entities. This phased approach ensures a smooth rollout and broader reach.
Strategic Importance
The UPI-NPI linkage marks a significant step in expanding financial access and strengthening digital and economic connectivity between India and Nepal. It aligns with the G20's vision of making cross-border payments faster, more accessible, and affordable by directly connecting the instant payment systems of both countries. The initiative reinforces the longstanding social, cultural, and economic bonds shared by the two nations.
Industry Commentary
Ritesh Shukla, Managing Director and Chief Executive Officer of NPCI International, commented, 'We are pleased to launch a cross-border remittance link between India and Nepal in partnership with NCHL. This initiative underscores 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.'
About the Organizations
NPCI International Payments Limited (NIPL), incorporated in 2020, is a wholly owned subsidiary of the National Payments Corporation of India (NPCI). Nepal Clearing House Ltd. (NCHL) is a public limited company promoted by Nepal Rastra Bank, serving as the primary payments facilitator in Nepal.
