India and Nepal have launched a cross-border remittance mechanism that will allow citizens of both countries to make instant peer-to-peer money transfers through digital platforms.
The mechanism was officially launched on 6 June 2026 and links India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI).
According to the Ministry of Finance, the new system enables seamless, secure and real-time money transfers directly through mobile banking applications and digital wallets.
The initiative is expected to strengthen financial connectivity between India and Nepal, while improving convenience for travellers, businesses and people sending money across the border.
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The technical integration has been carried out through collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
The UPI-NPI linkage is also expected to support financial inclusion and deepen digital and economic integration between the two countries.
For travellers, the system will reduce the need to carry large amounts of cash or depend on physical currency exchange while crossing the border.
Local businesses in Nepal are also expected to benefit from easier digital payments by Indian visitors, with faster settlements and lower dependence on cash handling.
The Ministry said the payment corridor will help make cross-border transactions safer, faster and more affordable.
UPI is currently accepted in nine countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia.
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