Daijiworld Media Network - New Delhi

New Delhi, Jun 9: In a major boost to regional digital connectivity, NPCI International Payments Limited (NIPL), the overseas arm of the National Payments Corporation of India (NPCI), has launched a cross-border payment linkage connecting India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI).

The new integration allows individuals in both countries to send and receive money instantly through secure and low-cost digital transactions, marking a significant milestone in cross-border financial services between India and Nepal.

With the linkage now operational, users can carry out person-to-person (P2P) transfers using mobile numbers, UPI IDs or virtual payment addresses (VPAs), eliminating the need to share sensitive banking information such as account numbers and IFSC codes.

The service has initially been rolled out through selected banking partners and financial institutions, with plans to expand its reach in subsequent phases.

According to NIPL, the initiative is expected to enhance financial inclusion, improve remittance efficiency and strengthen economic ties between the two neighbouring countries. The project also aligns with international efforts, including priorities outlined by the G20, to make cross-border payments faster, more accessible and cost-effective.

Commenting on the launch, Ritesh Shukla, Managing Director and Chief Executive Officer of NIPL, said the partnership with Nepal Clearing House Limited reflects a commitment to delivering innovative payment solutions that address the evolving needs of global communities.

He noted that the new remittance corridor would provide families and individuals with a secure, affordable and real-time method of transferring funds across borders, while also supporting broader financial inclusion objectives.

The real-time settlement feature is expected to significantly reduce remittance costs compared to conventional money transfer channels and ensure quicker access to funds, particularly for families that rely heavily on regular cross-border remittances.

Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL, described the launch as the result of close cooperation between institutions in both countries. He said the initiative would make fund transfers more seamless, convenient and accessible for millions of users and businesses.

Industry experts believe the India-Nepal payment corridor could serve as a blueprint for future interoperability projects, demonstrating how digital payment systems can be connected across borders to facilitate trade, remittances and financial inclusion.

The partnership between National Payments Corporation of India and Nepal Clearing House Limited is being viewed as an important step toward building a more interconnected digital payments ecosystem in the region, with potential for similar collaborations in other markets in the future.