In a significant move towards enhancing financial connectivity between India and Nepal, the Reserve Bank of India (RBI) and Nepal Rastra Bank (NRB) on Thursday (February 15) have inked an agreement to integrate their fast payment systems.
"Reserve Bank of India and Nepal Rastra Bank today signed and exchanged Terms of Reference for integration of fast payment systems of India and Nepal, viz,
Unified Payments Interface (UPI) of India and National Payments Interface (NPI) of Nepal, respectively," the RBI said.
The agreement focuses on linking India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI), aimed at facilitating seamless cross-border remittances. The terms of reference were signed and exchanged between RBI and NRB, laying the groundwork for the integration of these fast payment systems.
Once implemented, users of both UPI and NPI will be able to conduct instant and low-cost fund transfers between the two countries, fostering greater financial inclusivity and efficiency.
"The collaboration between India and Nepal in linking their fast payment systems through the UPI-NPI linkage will further deepen financial connectivity and reinforce the enduring historical, cultural, and economic ties between the two countries," the RBI said.
"Based on the Terms of Reference exchanged between
RBI and NRB, the necessary systems will be put in place for interlinking of UPI and NPI. The formal launch of the linkage i.e., the commencement of operations will be done at a later date," the central bank added.
(Edited by : Shoma Bhattacharjee)
