15 March, Kathmandu: According to the agreement reached during Prime Minister Pushpa Kamal Dahal’s India visit in May/June 2023, the preparation for the Nepal-India digital payment system has reached its final stage.
On June 1, in the presence of Prime Minister Dahal and his Indian counterpart Narendra Modi, an agreement was signed between India’s National Payment Corporation of India (NPCI) and Nepal Clearing House Limited (NCHL) to initiate cross-border digital payments by connecting the systems of the two entities.
The digital transactions can be completed through bank transfers, wallets, and mobile banking, facilitated by QR scanning.
An NCHL official stated, “The preparation work is expected to be completed by March 15.”
NCHL was established with the investment of Nepal Rastra Bank and NPCI has the investment of the Reserve Bank of India (RBI).
Post the development of this system, the central banks of both countries are expected to establish a limit for the amount that can be transferred between them through this system. “We are doing our homework. Based on our research, we will establish the limit soon,” remarked Dr Gunakar Bhatt, the spokesperson for Rastra Bank and Head of the Payment Systems Department.
The source indicated that other payment service providers from both countries may participate in the developing system. “Once we establish the infrastructure, other companies can join and offer their services,” he added.
