Central banks of Nepal, India sign ToR to integrate fast payment systems

KATHMANDU: The central banks of Nepal and India have agreed to integrate the fast payment systems of India and Nepal.

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari and Reserve Bank of India (RBI) Governor Shaktikantha Das on Thursday signed and exchanged Terms of Reference for interlinking of National Payments Interface (NPI) of Npeal and Unified Payments Interface (UPI) of India.

The integration aims at facilitating cross-border remittances between Nepal and India by enabling users of the two systems to make instant, low-cost fund transfers.

Based on the ToR, the two central banks would put in place the necessary systems for the interlinking of NPI and UPI.

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, RBI said in a statement after the signing of ToR.

Reserve Bank of India and Nepal Rastra Bank signed and exchanged Terms of Reference for interlinking of fast payment systems of India (UPI) and Nepal (NPI) in the august presence of Governor, RBI @DasShaktikanta and Governor, NRB @AdhikariMaha today.
Formal launch of the linkage… pic.twitter.com/dLGAezAX2E

— ReserveBankOfIndia (@RBI) February 15, 2024