Overview
- A cross‑border payment linkage announced Tuesday by NPCI International Payments Ltd. (NIPL) and Nepal Clearing House Ltd. (NCHL) is now live through a select group of banks, enabling immediate person‑to‑person transfers between India and Nepal.
- Senders can use recipients’ mobile numbers, virtual payment addresses (VPAs) or UPI IDs so transfers do not require sharing bank account details, and users must give one‑time consent for cross‑border transfers in their banking app.
- The corridor processes transactions in real time and is expected to cut remittance costs compared with traditional channels, giving faster access to funds for families and workers who rely on timely transfers.
- Rules and fees differ by direction: Nepal‑to‑India transfers are capped at INR 15,000 per transaction and INR 100,000 per month with a flat fee of NPR 240, while India‑to‑Nepal transfers allow up to INR 200,000 per transaction and fees vary by bank.
- The launch builds on bilateral agreements and central‑bank frameworks and is being framed by officials as a model for interoperable instant‑payment corridors that support financial inclusion and G20 goals for cheaper cross‑border payments.