India and Nepal have operationalised a peer-to-peer (P2P) cross-border remittance mechanism, marking a significant step in strengthening digital financial connectivity between the two neighbouring countries.
Launched on 6 June 2026, the initiative establishes a direct linkage between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), enabling individuals to make instant, secure and seamless money transfers through mobile banking applications and digital wallets.
The integration is expected to enhance financial inclusion and support deeper economic and digital ties between India and Nepal. It also aligns with broader regional efforts to create accessible, secure and affordable cross-border payment systems.
The technical integration has been implemented through a 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 is expected to simplify cross-border transactions for individuals, businesses and travellers by enabling real-time transfers without the need for traditional banking channels or physical cash. The system also reduces the need for currency exchange during travel and provides an alternative to conventional remittance methods.
For businesses, particularly merchants in Nepal that serve Indian visitors, the linkage is expected to facilitate digital payments, improve transaction efficiency and support faster settlement of funds. The initiative is also expected to contribute to improved cash-flow management and lower operational costs associated with handling cash transactions.
The launch further strengthens economic integration between the two countries, which share extensive trade, tourism and people-to-people links. By enabling direct digital payments across borders, the mechanism is expected to support growing travel flows and commercial activity between India and Nepal.
The development also adds to the expanding international footprint of UPI. Indian travellers can currently use UPI-enabled payment services in nine countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia.
The UPI-NPI linkage represents one of the latest efforts to promote interoperable digital payment systems and strengthen financial connectivity across the region.
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