India, Nepal launch instant UPI-based money transfer system across borders
India and Nepal have linked their payment networks, enabling real-time cross-border money transfers through mobile apps, making remittances faster, cheaper and more convenient.
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India and Nepal have launched a peer-to-peer (P2P) cross-border remittance mechanism, marking a significant step in strengthening digital financial connectivity and bilateral cooperation between the two neighbouring countries.
The new system, which became operational on 6 June 2026, establishes a direct linkage between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI). The integration allows citizens of both countries to make seamless, secure and real-time money transfers directly through mobile banking applications and digital wallets.
The technical integration was implemented through a collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
The cross-border payment corridor is expected to deliver multiple benefits for consumers and businesses. Travellers will be able to transfer funds instantly without the need to carry physical cash, exchange currency or navigate foreign exchange-related inconveniences.
The mechanism is also expected to support local merchants in Nepal by providing access to a large base of Indian digital payment users, potentially increasing transaction volumes. In addition, merchants are expected to benefit from improved cash management, reduced costs associated with handling physical currency and secure real-time settlement of transactions.
The direct payment linkage eliminates reliance on slower traditional banking channels and enables instant cross-border fund transfers.
UPI is currently accepted in nine countries — Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia — allowing Indian travellers to make payments abroad using familiar digital payment platforms.
The new system, which became operational on 6 June 2026, establishes a direct linkage between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI). The integration allows citizens of both countries to make seamless, secure and real-time money transfers directly through mobile banking applications and digital wallets.
According to the Ministry of Finance, the UPI-NPI linkage is aimed at advancing financial inclusion and deepening economic and digital integration between India and Nepal. The initiative is also aligned with broader regional objectives of making cross-border payments more accessible, safe and affordable.
The technical integration was implemented through a collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
The cross-border payment corridor is expected to deliver multiple benefits for consumers and businesses. Travellers will be able to transfer funds instantly without the need to carry physical cash, exchange currency or navigate foreign exchange-related inconveniences.
The mechanism is also expected to support local merchants in Nepal by providing access to a large base of Indian digital payment users, potentially increasing transaction volumes. In addition, merchants are expected to benefit from improved cash management, reduced costs associated with handling physical currency and secure real-time settlement of transactions.
The direct payment linkage eliminates reliance on slower traditional banking channels and enables instant cross-border fund transfers.
UPI is currently accepted in nine countries — Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia — allowing Indian travellers to make payments abroad using familiar digital payment platforms.
(Edited by : Prashant)
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