In a momentous development, the Nepal Rastra Bank (NRB) and the Reserve Bank of India (RBI) have officially signed the ‘Terms of Reference’ for integrating their payment systems. This strategic agreement aims to facilitate seamless cross-border remittances between the neighboring countries.
The exchange of terms of reference between the Nepal Rastra Bank and the Reserve Bank of India marks a pivotal moment in bilateral financial cooperation.
The integration will connect India’s Unified Payment Interface (UPI) with Nepal’s National Payment Interface (NPI), enabling users of both systems to transfer funds instantly and affordably.
Yogesh Dayal, Chief General Manager at the Reserve Bank of India, emphasized the significance of this integration. He highlighted its role in enabling low-cost cross-border remittances and stressed the importance of leveraging technology to streamline financial transactions between Nepal and India. Ultimately, this move benefits individuals and businesses on both sides.
The collaboration between Nepal and India to link their fast payment systems through the integration of UPI and NPI is expected to strengthen historical, cultural, and economic bonds. This initiative reflects a commitment to fostering greater financial inclusivity and accessibility across borders.
As the necessary infrastructure for linking UPI and NPI is established, the formal launch of this linkage awaits an official announcement.
While the exact commencement date remains undisclosed, this agreement sets the stage for a promising future of cross-border remittances between Nepal and India. Both nations are poised to unlock new opportunities for economic cooperation and collaboration.
