Signing of ‘Terms of Reference’ for Cross-Border Remittances Between Nepal and India

In a significant step towards enhancing financial connectivity between Nepal and India, the Nepal Rastra Bank (NRB) and the Reserve Bank of India (RBI) have officially signed the ‘Terms of Reference’ for the integration of their respective payment systems. This landmark agreement aims to facilitate seamless cross-border remittances between the two neighboring countries.

The terms of reference were exchanged between the Nepal Rastra Bank and the Reserve Bank of India on Thursday, marking a pivotal moment in bilateral financial cooperation. The integration will see India’s Unified Payment Interface (UPI) being linked with Nepal’s National Payment Interface (NPI), allowing users of both systems to transfer funds instantly and affordably.

Yogesh Dayal, Chief General Manager at the Reserve Bank of India, highlighted the significance of this integration in a statement, emphasizing its role in enabling low-cost cross-border remittances. He underscored the importance of leveraging technology to streamline financial transactions between Nepal and India, ultimately benefiting individuals and businesses on both sides.

The cooperation between Nepal and India to link their fast payment systems through the integration of UPI and NPI is expected to deepen financial ties and strengthen the historical, cultural, and economic bonds between the two nations. This initiative reflects a commitment to fostering greater financial inclusivity and accessibility across borders.

According to the exchanged terms of reference, the necessary infrastructure for linking UPI and NPI will be established, paving the way for the formal launch of the linkage. While the exact commencement date of operations is yet to be announced, the groundwork laid by this agreement signals a promising future for cross-border remittances between Nepal and India.

As both countries move forward with this integration, they are poised to unlock new opportunities for economic cooperation and collaboration, further solidifying their longstanding relationship. The signing of the ‘Terms of Reference’ represents a significant milestone in the journey towards a more interconnected and resilient financial ecosystem in the region.