The service has been introduced by NPCI International Payments Ltd. (NIPL), the global arm of the National Payments Corporation of India, in collaboration with Nepal Clearing House Ltd. (NCHL). This connects India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI).
This integration facilitates person-to-person (P2P) transfers and is currently accessible through select banks, with plans to extend the service to additional financial institutions in the future.
For users, the primary advantage is enhanced convenience. Indians sending money to relatives in Nepal can now transfer funds using the recipient’s mobile number or VPA. Likewise, Indian users in Nepal can remit money to India through UPI IDs. Transactions occur in real time, minimizing the delays typically linked to conventional remittance channels.
This development holds particular importance due to the strong economic and social connections between the two neighboring countries. Numerous workers, students, and families frequently transfer money across the India-Nepal border, often depending on remittance services for household expenses, educational fees, and emergency support.
According to NPCI International and NCHL, the new payment corridor aims to provide a secure, transparent, and cost-effective alternative to traditional cross-border transfers. By linking the efficient payment systems of both nations, the initiative intends to enhance financial inclusion and decrease friction in cross-border transactions.
The launch also integrates Nepal into the expanding network of countries linked to India’s digital payment infrastructure. In recent years, UPI has broadened its international reach through payment acceptance and cross-border payment partnerships across multiple markets.
The India-Nepal linkage is anticipated to benefit individuals reliant on timely remittances by enabling instant fund settlements while minimizing the need for sharing sensitive banking details. Representatives from both organizations noted that the project could serve as a model for future interoperable real-time payment systems between nations.
The service is currently operational through participating banks, with wider accessibility expected as more institutions join the network.
