New Delhi: India and Nepal have launched a peer-to-peer (P2P) cross-border remittance mechanism on June 6 to enhance convenience for travellers and businesses across both countries, the finance ministry said on Thursday.
The newly operationalised system establishes a direct link between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI), and enables citizens of both nations to make real-time money transfers directly via mobile banking applications and digital wallets.
"The UPI-NPI linkage represents a major advancement in financial inclusion, fostering stronger economic and digital ties between India and Nepal. This aligns perfectly with regional goals for accessible, safe, and affordable cross-border payments, reinforcing longstanding social and economic bonds," the ministry said in a statement.
The technical integration was executed via collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and the Nepal Clearing House Limited (NCHL).
"The initiative strengthens financial inclusion, boosts digital and economic integration, and enhances convenience for travellers and businesses across both countries," the ministry added.
The key features of the UPI-NPI remittance linkage are enhanced traveller convenience by eliminating the friction of physical currency exchange, carrying large amounts of cash, or navigating unfamiliar foreign exchange fees.
It would also give an economic boost for local merchants as Nepalese businesses gain immediate access to a massive Indian visitor demographic, driving higher transaction volumes.
UPI is now accepted in nine countries - Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia - enabling Indian travellers to make seamless payments abroad through familiar platforms.
