India–Nepal Launch Cross-Border Remittance Mechanism to Boost Financial Connectivity

Ø Seamless, secure and instant P2P transfers enabled through direct linkage of India’s UPI and Nepal’s National Payments Interface

Ø The initiative strengthens financial inclusion, boosts digital and economic integration, and enhances convenience for travellers and businesses across both countries

Key Highlights

· India and Nepal launched a Peer-to-Peer (P2P) cross-border remittance system on 6 June 2026.

· Direct integration of India’s UPI and Nepal’s National Payments Interface (NPI) enables instant, secure, and seamless money transfers.

· Citizens of both countries can transfer funds directly through mobile banking apps and digital wallets.

· The initiative strengthens financial inclusion, digital connectivity, and economic cooperation between the two neighbouring countries.

· The linkage supports the goal of safe, affordable, and accessible cross-border payments.

Major Benefits

1. Seamless Transfers

· Real-time and secure money transfers across borders.

· Reduced dependence on traditional banking channels.

2. Convenience for Travellers

· No need to carry large amounts of cash.

· Easier payments without worrying about currency exchange hassles.

3. Support for Businesses

· Nepalese merchants can accept digital payments from Indian visitors.

· Increased transaction volumes and improved customer convenience.

4. Better Operational Efficiency

· Reduced cash-handling costs.

· Faster settlement of transactions and improved cash management.

Implementation Partners

· NPCI International Payments Limited (NIPL) – India

· Nepal Clearing House Limited (NCHL) – Nepal

Global Reach of UPI

UPI is currently accepted in nine countries:

1. Singapore

2. United Arab Emirates

3. France

4. Mauritius

5. Nepal

6. Bhutan

7. Qatar

8. Sri Lanka

9. Cambodia

Conclusion

The UPI–NPI linkage marks a significant milestone in India–Nepal financial cooperation by enabling fast, secure, and affordable cross-border digital payments, while promoting tourism, trade, and regional economic integration.

[ABS News Service/12.06.2026]

In a major boost to digital financial connectivity and neighbourhood cooperation, India and Nepal officially launched a peer-to-peer (P2P) cross-border remittance mechanism on June 6, 2026.

The newly operationalized system establishes a direct link between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI). This integration enables citizens of both nations to make seamless, real-time, and secure instant money transfers directly via mobile banking applications and digital wallets.

The UPI-NPI linkage represents a major advancement in financial inclusion, fostering stronger economic and digital ties between India and Nepal. This aligns perfectly with regional goals for accessible, safe, and affordable cross-border payments, reinforcing longstanding social and economic bonds.

Driving Economic and Digital Integration:

The technical integration was executed via collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India—and the Nepal Clearing House Limited (NCHL).

The Strategic Impact: Key Features of the UPI-NPI Remittance Linkage:

This digital payment corridor represents a major shift in how commerce operates between the two countries, delivering immediate benefits:

· Enhanced Traveler Convenience: Eliminates the friction of physical currency exchange, carrying large amounts of cash, or navigating unfamiliar foreign exchange fees.

· Economic Boost for Local Merchants: Nepal businesses gain immediate access to a massive, tech-savvy Indian visitor demographic, driving higher transaction volumes.

· Operational Efficiency: Local merchants will experience optimized cash management, lowered overhead costs associated with physical cash handling, and secure, real-time transaction settlements.

· Real-Time, Direct Transfers: Eliminates the need to carry physical cash across borders or rely on slower, traditional banking channels.

UPI Coverage around the world:

UPI is accepted in Nine countries - Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia - enabling Indian travellers to make seamless payments abroad through familiar platforms.