India and Nepal Link UPI and NPI for Seamless Real-Time Money Transfers

India and Nepal have operationalized the UPI-NPI linkage for cross-border remittances.

The system enables real-time person-to-person (P2P) money transfers.

Users can transfer funds using: Mobile numbers, Virtual Payment Addresses (VPAs), UPI IDs

The linkage has been implemented through collaboration between:

NPCI International Payments Limited (NIPL)

Nepal Clearing House Limited (NCHL)

The system eliminates the need to share bank account details.

Initially launched through select banks and will be expanded further.

The initiative supports the G20 vision of accessible and affordable cross-border payments.

About the UPI–NPI Linkage

Unified Payments Interface (UPI)

Launched: 11 April 2016

Developed by: National Payments Corporation of India (NPCI)

Regulated by: Reserve Bank of India (RBI)

Enables instant 24×7 digital payments and fund transfers.

National Payments Interface (NPI)

Nepal's national digital payment infrastructure.

Facilitated by Nepal Clearing House Limited (NCHL).

Supports interoperable digital payments across Nepal.

NPCI International Payments Limited (NIPL)

International arm of NPCI.

Responsible for expanding UPI and RuPay globally.

Promotes India's digital payment systems internationally.

Nepal Clearing House Limited (NCHL)

Nepal's leading payment system operator.

Facilitates electronic payment and settlement services.

Plays a key role in Nepal's digital payments ecosystem.

Countries Linked with UPI

UPI services/payment linkages have been established with:

Singapore

UAE

France

Sri Lanka

Mauritius

Nepal

Bhutan

Cambodia

India–Nepal Relations

Diplomatic Relations Established: 1950 (Treaty of Peace and Friendship)

Open Border between India and Nepal.

Nepal is India's key neighbour under the Neighbourhood First Policy.

Both countries cooperate in trade, connectivity, energy, and digital payments.

Nepal:

Capital: Kathmandu

Currency: Nepalese Rupee (NPR)

Prime Minister: Balen Shah (Incumbent)

Exam Focus Points (Quick Revision Notes):

Countries in News → India and Nepal

Payment Systems Linked → UPI and NPI

Type of Service → Cross-border P2P remittances

Indian Entity → NPCI International Payments Limited (NIPL)

Nepalese Entity → Nepal Clearing House Limited (NCHL)

UPI Launch Year → 2016

UPI Developed By → NPCI

Regulator of UPI → RBI

Capital of Nepal → Kathmandu

Currency of Nepal → Nepalese Rupee