New Delhi: In a significant step towards strengthening digital financial integration and regional cooperation, India and Nepal have officially launched a peer-to-peer (P2P) cross-border remittance service, enabling seamless real-time money transfers between citizens of the two neighbouring countries.
The new system, which became operational on June 6, links India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI). The integration allows users to transfer funds instantly, securely and directly through mobile banking applications and digital wallets without relying on traditional banking channels.
The initiative is expected to deepen financial inclusion and enhance economic ties between India and Nepal by making cross-border transactions faster, more accessible and affordable. Officials said the move aligns with broader regional efforts to promote secure and efficient digital payment systems.
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, and Nepal Clearing House Limited (NCHL).
The new payment corridor is expected to provide major convenience for travellers and businesses operating across the border. Users will no longer need to carry large amounts of cash, exchange currency physically or deal with lengthy remittance procedures. Transactions can now be completed instantly through familiar digital payment platforms.
The system is also expected to benefit merchants in Nepal by giving them easier access to Indian visitors, one of the country’s largest tourist segments. Faster settlements, reduced dependence on cash transactions and improved cash-flow management are likely to enhance operational efficiency for local businesses.
Industry observers believe the UPI-NPI linkage will further strengthen long-standing social, cultural and economic connections between India and Nepal while encouraging the wider adoption of digital payments across South Asia.
UPI continues to expand its international footprint and is currently accepted in several countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia, allowing Indian travellers to make digital payments abroad using familiar payment applications.
