New Delhi: In a major step towards strengthening digital financial cooperation, India and Nepal have officially launched a UPI-NPI-based cross-border remittance service, enabling citizens of both countries to send and receive money seamlessly through mobile banking applications and digital wallets.
The initiative, launched on June 6, establishes direct interoperability between India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI), significantly enhancing digital payment connectivity between the two neighboring nations.
According to a statement issued by the Ministry of Finance, the new mechanism will allow individuals to conduct secure, real-time, and hassle-free cross-border transactions at any time using familiar digital payment platforms. The service is expected to benefit millions of users, particularly migrant workers, students, families, and businesses that regularly transfer funds between the two countries.
The technological integration has been developed through a collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), and Nepal Clearing House Limited (NCHL).
Officials described the development as a significant milestone in advancing financial inclusion and strengthening economic ties between India and Nepal. The cross-border payment corridor is expected to make transactions more accessible, secure, affordable, and efficient, while reducing dependency on traditional remittance channels that are often more time-consuming and costly.
“The UPI-NPI linkage marks a major achievement in regional digital cooperation and aligns with broader goals of promoting safe and low-cost cross-border payments,” the ministry said. It added that the initiative will further deepen long-standing social, cultural, and economic connections between the two countries.
The launch comes amid India’s growing efforts to expand the global footprint of its digital payment ecosystem. UPI has emerged as one of the world’s most successful real-time payment systems, processing billions of transactions every month and transforming the country’s digital economy.
With Nepal joining the network, India’s UPI platform is now operational across nine countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia. Indian travelers visiting these destinations can use their existing UPI-enabled mobile applications to make payments conveniently without relying heavily on cash or foreign exchange services.
Industry experts believe the India-Nepal payment linkage could serve as a model for future regional digital payment collaborations in South Asia. The integration is expected to facilitate smoother remittances, encourage digital adoption, and support economic activities across borders.
Given the close people-to-people ties between India and Nepal, the service is anticipated to benefit a large number of individuals who frequently transfer money between the two countries for family support, education, tourism, and business purposes.
The latest move underscores India’s commitment to promoting digital public infrastructure globally while enhancing regional financial connectivity. As cross-border digital payment systems continue to evolve, the UPI-NPI integration represents another important step toward creating a more connected and inclusive digital economy in South Asia.
