India and Nepal have launched a peer-to-peer (P2P) cross-border remittance mechanism, enabling seamless, real-time digital money transfers between the two countries through the integration of India’s Unified Payments Interface (UPI) and Nepal’s National Payments Interface (NPI).
The system, operationalised on June 6, 2026, allows citizens of both nations to send and receive money instantly through mobile banking applications and digital wallets, reducing dependence on cash transactions and traditional banking channels, Ministry of Finance said in a statement.
The UPI-NPI linkage is expected to strengthen financial inclusion and deepen digital cooperation between India and Nepal by providing a faster, safer, and more affordable cross-border payment solution.
The integration was developed through collaboration between NPCI International Payments Limited (NIPL) and Nepal Clearing House Limited (NCHL).
The new digital payment corridor is expected to benefit travellers, businesses, and local merchants by eliminating the need for physical currency exchange and reducing challenges related to foreign exchange costs and cash handling.
For Indian travellers visiting Nepal, the facility will enable convenient payments through familiar UPI-enabled platforms. Nepalese merchants, meanwhile, will gain access to a wider customer base, including India’s large digital payment user community, helping boost transaction volumes and improve payment settlements.
The initiative also supports greater operational efficiency for businesses by enabling secure, direct, and instant settlements while lowering the costs associated with managing cash transactions.
With the addition of Nepal, India’s UPI network is now accepted in nine countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia, allowing Indian users to make digital payments abroad through familiar payment platforms.