New Delhi, June 11 (). In an important step to promote digital financial connectivity and cooperation with neighboring countries, India and Nepal officially launched the Person-to-Person (P2P) cross-border remittance mechanism.
This newly-powered system establishes a direct connection between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI). This integration enables citizens of both countries to make instant money transfers seamlessly, in real-time and securely through mobile banking applications and digital wallets.
The UPI-NPI integration represents a major advancement in financial inclusion, fostering stronger economic and digital ties between India and Nepal. This aligns perfectly with the regional goals of accessible, secure and affordable cross-border payments, thereby strengthening long-term social and economic relationships.
This technology integration was executed through collaboration between NPCI International Payments Limited (NIPL), the international arm of National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
This digital payment corridor will bring significant changes in the system of transactions between the two countries. Travelers will be free from the complexities of currency exchange, the need to carry large amounts of cash and unfamiliar foreign exchange charges. There will be economic benefits for local businessmen. Nepali businesses will get direct access to a large number of technology-enabled Indian tourists and customers, thereby increasing transaction volumes.
This will facilitate cash management for local merchants, reduce cash handling costs and enable secure and real-time payment settlement. There will be less need to carry cash cross-border or rely on traditional banking channels.
Currently UPI is accepted in nine countries – Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia. Indian travelers in these countries can easily make digital payments through their familiar UPI platforms.
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ASH/DKP