India and Nepal have operationalized a new cross-border remittance mechanism that enables instant person-to-person money transfers through the direct integration of India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), strengthening financial connectivity between the two neighboring countries.
India and Nepal have launched a real-time cross-border remittance system that allows individuals to transfer money seamlessly between the two countries using mobile banking applications and digital wallets. The initiative marks a significant step in expanding digital financial integration and enhancing economic cooperation in the region.
The newly operational mechanism establishes a direct connection between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), enabling secure and instant person-to-person (P2P) transfers. The linkage is expected to simplify remittance flows, reduce dependence on traditional transfer channels and improve accessibility to digital financial services.
The project has been implemented through collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL). Officials said the initiative aligns with broader efforts to promote affordable and efficient cross-border payment systems while advancing financial inclusion.
The integration is expected to benefit millions of users by providing a faster and more convenient way to send and receive funds. For travelers, it removes the need to carry large amounts of cash or rely heavily on currency exchange services. Businesses and merchants are also expected to benefit from streamlined payment settlements and improved transaction efficiency.
According to the government, the linkage will strengthen economic and digital ties between India and Nepal while supporting trade, tourism and people-to-people connectivity. The move further reinforces India’s efforts to expand the international reach of its digital payments infrastructure.
With Nepal joining the growing network of countries connected to India’s digital payment ecosystem, UPI now has acceptance or connectivity arrangements across multiple international markets, including Singapore, the United Arab Emirates, France, Mauritius, Bhutan, Qatar, Sri Lanka and Cambodia.
The launch is being viewed as another milestone in regional digital cooperation, highlighting the increasing role of interoperable payment systems in facilitating cross-border financial transactions and economic integration.
Source: This article is based on a Press Information Bureau (PIB) release issued by the Ministry of Finance
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