UPI meets NPI: How the new India-Nepal remittance facility benefits travellers, migrant workers

India and Nepal have rolled out a peer-to-peer (P2P) cross-border remittance facility, marking a major step towards strengthening digital financial connectivity between the two neighbouring countries. The service became operational on 6 June and is aimed at making money transfers easier for travellers, families and businesses, the finance ministry said on Thursday.

The initiative links India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI), allowing users in both countries to transfer funds instantly through mobile banking apps 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," the ministry said in a statement.

"The initiative strengthens financial inclusion, boosts digital and economic integration, and enhances convenience for travellers and businesses across both countries," the ministry added.

The integration was implemented through a partnership between NPCI International Payments Limited (NIPL), the overseas arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL), which operates Nepal's payment infrastructure.

How will it benefit tourists and migrant workers?

A key advantage of the new linkage is the convenience it offers to travellers. Users will no longer need to exchange large amounts of currency, carry cash while travelling, or deal with unfamiliar foreign exchange charges for routine transactions.

The platform is also expected to benefit local businesses in Nepal by giving them access to a vast base of Indian visitors. Easier digital payments are likely to boost spending and increase transaction volumes across sectors such as retail, hospitality and tourism.

With the latest integration, UPI is now accepted in nine countries — Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia. Indian travellers can use familiar payment applications abroad, making cross-border transactions more seamless.

The remittance service has initially been launched through select banking partners and will gradually be expanded to include more financial institutions, increasing its reach and accessibility.

"The successful launch of this linkage between Nepal and India is a testament to our close collaboration and commitment to making cross-border fund transfer seamless, real-time and convenient," Neelesh Man Singh Pradhan, Chief Executive Officer, NCHL, said in a statement.

"As we embark together on a digital payments journey, we look forward to adding more services and ensuring inclusion for the millions of people and businesses on both sides," he added.

According to sources cited by PTI, the facility is currently available through Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank and Nepal SBI Bank. Customers of Himalayan Bank, NMB Bank and Siddhartha Bank can receive remittances through the network.

Under the arrangement, users in India can transfer money to Nepal using the recipient's mobile number or virtual payment address (VPA). Likewise, users in Nepal can send funds to India using UPI IDs, eliminating the need to share bank account details.

The simplified process enhances convenience while ensuring greater security and privacy for users on both sides of the border.

Transaction limits

Transaction limits have also been defined under the framework. Nepal-based users can send up to INR 15,000 per transaction, subject to a monthly cap of INR 100,000. Indian users, meanwhile, can transfer up to INR 200,000 in a single transaction without any monthly limit.