India, Nepal connect payment systems for instant cross-border P2P transfers

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)