KATHMANDU, June 7
Nepal and India have officially operationalised peer-to-peer (P2P) cross-border digital payment services, allowing individuals in both countries to transfer money directly through linked digital payment platforms.
The announcement was made following bilateral talks between Nepal’s Foreign Minister Shisir Khanal and India’s External Affairs Minister Dr. S. Jaishankar in New Delhi on Saturday. The move marks a significant milestone in strengthening digital financial cooperation between the two neighbouring countries.
The newly launched system enables seamless cross-border fund transfers between citizens of Nepal and India, making remittances and personal payments faster, safer, and more convenient. The initiative is expected to particularly benefit students, workers, tourists, and families with financial ties across the border.
Until now, Indian visitors in Nepal could make payments to Nepali merchants by scanning QR codes using India’s Unified Payments Interface (UPI). However, Nepali citizens travelling to India did not have access to a similar digital payment facility. The latest development expands the partnership beyond merchant payments to include direct person-to-person transactions.
The service operates under a Memorandum of Understanding (MoU) signed in June 2023 between Nepal Clearing House Limited (NCHL) and the National Payments Corporation of India (NPCI), aimed at enhancing cross-border digital payment infrastructure and financial inclusion.
During the meeting, the two ministers also reviewed progress on several ongoing bilateral projects and cooperation initiatives. Both sides expressed commitment to accelerating the implementation of key development and connectivity projects that contribute to stronger Nepal–India relations.
The launch of cross-border digital payments reflects the growing digital transformation of South Asia’s financial sector and is expected to further strengthen economic integration, trade, tourism, and people-to-people connectivity between Nepal and India.
