India and Nepal have launched a peer-to-peer (P2P) cross-border remittance mechanism, marking a significant step towards strengthening digital financial connectivity and economic cooperation between the two neighbouring countries.
The system, which became operational on June 6, establishes a direct linkage between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), enabling real-time and secure money transfers between individuals through mobile banking applications and digital wallets.
According to an official statement, the integration is expected to enhance financial inclusion, facilitate cross-border transactions and further strengthen long-standing economic and people-to-people ties between the two countries.
The linkage has been implemented through collaboration between the National Payments Corporation of India’s international arm, NPCI International Payments Limited (NIPL), and Nepal Clearing House Limited (NCHL).
The new payment corridor allows users to transfer funds instantly across borders without relying on conventional banking channels. The system is also expected to benefit travellers by reducing dependence on physical cash and simplifying payment processes during cross-border visits.
Officials said the initiative would support local businesses and merchants by enabling faster and more secure digital transactions. It is also expected to improve operational efficiency through real-time settlements and reduced cash-handling requirements.
The launch aligns with broader efforts to promote safe, accessible and affordable cross-border payment systems in the region and deepen digital and economic integration between India and Nepal.
India has been steadily expanding the international footprint of UPI. The digital payment platform is currently accepted in nine countries, including Nepal, Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Qatar, Sri Lanka and Cambodia, allowing Indian travellers to make digital payments through familiar platforms while abroad.
