Overview
- The finance ministry and multiple reports confirmed that India and Nepal made the UPI‑NPI peer-to-peer remittance corridor operational on June 6, allowing real-time transfers between users of Indian UPI apps and Nepal’s NPI systems.
- Technical work to join the two national systems was carried out by NPCI International Payments Ltd (NIPL) in partnership with Nepal Clearing House Ltd (NCHL), which operate India’s and Nepal’s core payment rails respectively.
- The link lets individuals send and receive funds instantly using familiar mobile banking apps and digital wallets, removing the need to carry large amounts of cash or use slower traditional remittance channels.
- Nepalese merchants are expected to gain faster settlement, lower cash-handling costs, and easier access to Indian visitors who already use UPI, which could raise transaction volumes for small businesses and tourist-facing services.
- The launch expands UPI’s international footprint at a time of broader platform growth; UPI is now accepted in nine countries and recent data show record domestic transaction volumes that underscore rising digital payment adoption.