Overview
India and Nepal have launched a real-time, peer-to-peer money transfer system by integrating India’s UPI and Nepal’s NPI. Operational since June 6, the service allows instant fund transfers via mobile numbers or UPI IDs. The initiative aims to make cross-border remittances faster, cheaper, and more secure.
A Digital Bridge Across the Border
Millions of people live and work across the India-Nepal border. Sending money home has often been a slow and expensive process. Now, that is changing. On June 6, 2026, India and Nepal made their digital payment systems talk to each other. India’s Unified Payments Interface (UPI) is now connected with Nepal’s National Payments Interface (NPI). This creates a direct, real-time channel for person-to-person (P2P) money transfers. The new system was formally announced by India’s finance ministry on June 11, 2026.
What is UPI and NPI?
UPI (Unified Payments Interface)
UPI is India’s flagship real-time payment system. It was launched on April 11, 2016, by the National Payments Corporation of India (NPCI). It allows users to instantly transfer money between bank accounts using only a mobile number or a virtual payment address (VPA).
NPI (National Payments Interface)
The National Payments Interface is Nepal’s domestic digital payment system. It supports bank-to-bank transfers and wallet-based transactions, functioning as the backbone for digital payments within the country.
How the New System Works
The technical integration was implemented by NPCI International Payments Ltd (NIPL), the international arm of NPCI, in partnership with Nepal Clearing House Ltd (NCHL), the primary payments facilitator in Nepal.
Here’s how users can send and receive money:
This process eliminates the need to share sensitive bank account details, making the transaction simpler and more secure.
Transaction Limits and Service Fees
The Nepal Rastra Bank has set clear guidelines for the service:
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From India to Nepal : Users can send up to INR 200,000 per transaction, with no monthly limit.
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From Nepal to India : Users can send up to INR 15,000 per transaction, with a maximum monthly limit of INR 100,000.
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Service Fee : A nominal charge of INR 150 has been set for each transaction.
Which Banks Are Participating?
The service is currently live through select banks in Nepal:
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Participating banks for sending and receiving : Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank, and Nepal SBI Bank.
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Participating banks for receiving only : Himalayan Bank, NMB Bank, and Siddhartha Bank.
The service is expected to be expanded to additional banks in the coming months.
A Historic Step in Regional Connectivity
This new payment corridor is the second of its kind for UPI. Nepal becomes the second country after Singapore to achieve such a direct payment-system-level connectivity with India. UPI’s international footprint now covers nine countries: Bhutan, Singapore, the UAE, France, Mauritius, Qatar, Sri Lanka, Cambodia, and most importantly, Nepal.
A Human Touch: Benefits for Migrant Workers
This is where the story moves from technology to real life. Every year, an estimated $1.5 to $2 billion flows between the two countries. Until now, many migrant workers relied on informal and risky channels like 'hawala' or carried large sums of cash across the open border.
The new system offers a lifeline. A Nepali worker in Punjab can now send money home to their family in Kathmandu instantly via a mobile app. An Indian student in Pokhara can receive funds from their parents without needing to find a remittance agent. As a Nepal Rastra Bank spokesperson noted, the digital service will reduce risks associated with carrying cash and provide greater security for migrant workers’ earnings.
What’s Next?
The UPI-NPI linkage is more than just a money transfer service. It is a key part of the G20’s vision for faster and more affordable cross-border payments. By directly connecting the fast-payment systems of two countries, it reinforces the deep social, cultural, and economic bonds that India and Nepal share. The service is also expected to benefit local merchants in Nepal by giving them access to India’s large base of digital payment users.
Conclusion
The launch of the UPI-NPI cross-border remittance link on June 6, 2026, is a landmark event for digital finance in South Asia. It promises to transform the lives of millions by making remittances instant, transparent, and affordable. This is not just a technical integration; it is a digital bridge that brings India and Nepal even closer.
Exam-Focused Points
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Name of the Integration : UPI-NPI Cross-Border Remittance Link.
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Operational Date : June 6, 2026; announced by India’s finance ministry on June 11, 2026.
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Entities Involved : NPCI International Payments Ltd (NIPL), Nepal Clearing House Ltd (NCHL).
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Purpose : Enables peer-to-peer (P2P), real-time, instant money transfers across borders.
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Method of Sending (India to Nepal) : Recipient’s mobile number or Virtual Payment Address (VPA).
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Method of Sending (Nepal to India) : UPI ID.
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Nepal’s Status : Second country (after Singapore) to have payment-system-level P2P connectivity with UPI.
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Indian Banks : Live through NIPL; customers can use any UPI-enabled app.
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Nepali Banks (Sending & Receiving) : Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank, Nepal SBI Bank.
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Nepali Banks (Receiving Only) : Himalayan Bank, NMB Bank, Siddhartha Bank.
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Transaction Limit (India to Nepal) : Up to INR 200,000 per transaction; no monthly limit.
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Transaction Limit (Nepal to India) : Up to INR 15,000 per transaction; monthly limit INR 100,000.
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Service Fee : INR 150 per transaction.
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Broader Impact : Aligns with G20 goals for accessible, affordable cross-border payments; strengthens socio-economic ties.
Frequently Asked Questions (FAQ)
Q1: What is the new cross-border remittance service between India and Nepal?
A: It is a direct payment linkage between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI). This integration enables real-time, low-cost, and secure person-to-person (P2P) fund transfers between the two countries.
Q2: How can a person in India send money to someone in Nepal?
A: A person in India can send money using the recipient’s mobile number or Virtual Payment Address (VPA). The system processes the transaction instantly.
Q3: How much money can one send from India to Nepal?
A: Users can send up to INR 200,000 per transaction. There is no monthly limit on the total amount that can be sent from India.
Q4: Is there a service charge for using this facility?
A: Yes, a nominal service fee of INR 150 is charged for each transaction.
Q5: Which banks are currently offering this service?
A: The service is available through several banks in Nepal, including Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank, and Nepal SBI Bank for both sending and receiving, while customers of Himalayan Bank, NMB Bank, and Siddhartha Bank can receive transfers.