India, Nepal launch UPI-NPI linkage for real-time cross-border remittances

India and Nepal have launched a direct payment linkage between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI), enabling real-time cross-border remittances between the two countries.

The service has been introduced by NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), in partnership with Nepal Clearing House Ltd. (NCHL), Nepal's primary payments facilitator.

The linkage allows Indian and Nepalese users in India, as well as Indian users in Nepal, to make person-to-person (P2P) money transfers across the border through mobile numbers and virtual payment addresses (VPAs). The service is currently available through select banks and will be expanded to additional financial institutions in the coming months.

Faster and lower-cost remittances

The UPI-NPI connection enables users to send money without sharing bank account details, offering a simplified and secure remittance process. Indian and Nepalese users can transfer funds to Nepal using the recipient's mobile number or VPA, while Indian users in Nepal can send money to India using UPI IDs.

The initiative is aimed at providing a real-time, affordable and secure channel for cross-border fund transfers while supporting financial inclusion in both countries.

“We are pleased to launch cross-border remittance link between India and Nepal in partnership with NCHL. This initiative emphasises our commitment to innovation that meet the evolving needs of global communities. By creating a real-time, affordable, and secure corridor for cross-border remittances, we are not only simplifying the remittance process for families in both nations but also promoting financial inclusion,” said Ritesh Shukla, Managing Director and Chief Executive Officer of NPCI International.

The organisations said the linkage aligns with the G20 objective of making cross-border payments more accessible and affordable by connecting the fast-payment systems of both countries.

Strengthening economic ties

Officials said the platform will provide timely support to families that rely on remittances by ensuring transactions are completed instantly. The service is also expected to reduce costs associated with traditional remittance channels while improving transparency and convenience.

“The successful launch of this linkage between Nepal and India is a testament to our close collaboration and commitment for making cross border fund transfer seamless, real-time and convenient. As we embark together on a digital payments journey, we look forward to add more services and ensure inclusion for the millions of people and businesses at both the sides,” said Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL.

According to NIPL and NCHL, the project strengthens the economic corridor between India and Nepal and supports the development of interoperable digital payment systems. The two organisations said the initiative could serve as a model for future cross-border payment collaborations in other regions.