New Delhi, June 11 (APAC Media): In a significant step towards enhancing digital financial connectivity and strengthening bilateral cooperation, India and Nepal officially launched a peer-to-peer (P2P) cross-border remittance facility.
The newly introduced mechanism creates a direct connection between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), allowing users in both countries to transfer money instantly through their mobile banking applications and digital wallets.
The UPI-NPI integration marks a major milestone in advancing financial inclusion and deepening economic and digital collaboration between the two neighbouring countries.
The initiative also supports regional objectives of making cross-border payments more accessible, secure, and affordable while reinforcing long-standing people-to-people and economic ties.
Driving Economic and Digital Integration
The technical integration has been implemented through a partnership between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), and Nepal Clearing House Limited (NCHL).
Key Features and Benefits of the UPI-NPI Remittance Linkage
The cross-border digital payment corridor is expected to transform financial transactions between India and Nepal by offering several advantages:
- Greater Convenience for Travellers: Users can make payments without the need for currency exchange, carrying cash, or dealing with complex foreign exchange procedures.
- Support for Local Businesses: Merchants in Nepal can benefit from increased spending by Indian visitors through easy-to-use digital payment options.
- Improved Operational Efficiency: Businesses can reduce cash-handling costs, streamline financial operations, and receive payments through secure, real-time settlements.
- Instant Cross-Border Transfers: The system enables direct and real-time money transfers, reducing dependence on traditional banking channels and physical cash transactions.
UPI’s Global Footprint
UPI has continued to expand its international presence and is currently accepted in nine countries, Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia.
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