India-Nepal Strengthen Financial Cooperation; Inauguration of Digital Payment Soon

India-Nepal Strengthen Financial Cooperation

VoM News Desk | March 2, 2024 | 03:11 PM IST | Breaking News, India, Nepal, World | Follow on Google News

India-Nepal Strengthen Financial Cooperation; Inauguration of Digital Payment Soon/ANI

India-Nepal Strengthen Financial Cooperation; Inauguration of Digital Payment Soon

Nepal’s Ambassador to India, Shankar Sharma, expressed gratitude for the recent guidelines issued by the Reserve Bank of India, ushering in a new era of financial collaboration between the two nations. Under the updated regulations, Nepali account holders can seamlessly send up to Rs 2 lakhs per transaction to Nepal, and walk-in customers have the convenience of remitting Rs. 50,000 per transaction, up to 12 times a year.

Revolutionizing Cross-Border Digital Payments: A Timely Collaboration

In a significant development, last December, Indian Ambassador to Nepal, Naveen Srivastava, announced the imminent launch of a digital payment gateway between the two nations. This initiative, expected to kick off in the first phase by the end of February 2024, stems from the collaboration between NPCI International Payments Limited (NIPL) and Nepal Clearing House Limited (NCHL). The integration of India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI) aims to streamline cross-border digital payments.

Strategic Partnership for Seamless Transactions: NIPL and NCHL Lead the Way

During the visit of Nepal PM Pushpa Kamal Dahal to India, a pivotal Memorandum of Understanding (MoU) was exchanged between NIPL and NCHL. This MoU signifies the commitment to establishing cross-border connectivity for financial transactions between the two countries, simplifying fund transfers and merchant payments. Initially focusing on inward and outward transfers between banks in India and Nepal, this collaboration will leverage the integration between UPI and NPI, paving the way for extended services, including other merchant payments.

These progressive steps are underpinned by the Nepal Clearing House Limited (NCHL), designated by the Nepal government. With a 10% investment from the Nepal Rastra Bank and 90% from various commercial banks, NCHL stands as a key player in fostering financial connectivity and convenience between India and Nepal.

VoM News Desk

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