Nepal-India Money Transfer System: A new cross-border remittance service has started for people working on either side of the Nepal-India border. Nepali citizens working in India and Indian citizens working in Nepal can now send money straight to family members through banking apps, instead of using older remittance routes.
The system was built after Nepal Clearing House Limited (NCHL) and the National Payments Corporation of India (NPCI) connected Nepal’s National Payments Interface (NPI) with India’s Unified Payments Interface (UPI). In its first stage, the service is only for person-to-person, or P2P, transfers.
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How the Service Works
At the moment, the service is live through several Nepali banks. Money can be sent and received through Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank and Nepal SBI Bank. Customers of Himalayan Bank, NMB Bank and Siddhartha Bank can receive transfers through the system too. Nepal to India transfers can go up to INR 15,000 per transaction and INR 100,000 per month, while India to Nepal transfers can go up to INR 200,000 per transaction with no monthly limit. Each transfer has a service fee of INR 150.
Nepal Rastra Bank spokesperson Guru Prasad Paudel said the service will help Nepali workers in India send money home at a lower cost. He also said it should reduce the use of risky and illegal channels like hundi. “Previously, workers had to depend on remittance companies. Now they can transfer money directly to family members through the banking system and mobile banking platforms,” Paudel said. “We have a clear mechanism in place to address any problems and resolve disputes. There are also provisions specifying the timeframe within which unsuccessful transactions must be settled.”
Why is the Launch about
NCHL Chief Executive Officer Neelesh Man Singh Pradhan said the service works fully in digital form and in real time. He said many migrant workers still carry cash across the open border, which can be unsafe. “Digital transfers will reduce the risks associated with carrying cash across the border and make transactions more transparent,” he said. “NCHL and NPCI will handle transaction processing, while the movement of funds and settlement will be managed by the respective banks in Nepal and India.”
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The two companies said the launch is meant to make cross-border payments faster, safer and easier. NCHL also said the service is now available through select banks and will be expanded to more banks later. According to the report, annual financial transactions between Nepal and India are estimated at $1.5 billion to $2 billion, so the new system could be a big help for workers and families who send money often. The service can also be used in India through linked non-bank payment apps such as Google Pay, Paytm and PhonePe, as long as they are tied to a bank account.
