India, Nepal open UPI-NPI digital corridor for instant remittances
India and Nepal have launched a cross-border peer-to-peer (P2P) remittance link by joining India's Unified Payments Interface (UPI) with Nepal's Payments Interface (NPI), marking a
India and Nepal have launched a cross-border peer-to-peer (P2P) remittance link by joining India's Unified Payments Interface (UPI) with Nepal's Payments Interface (NPI), marking a significant step in strengthening digital financial connectivity and economic integration between the two countries. The system became operational on June 6 and was announced on Thursday by India’s finance ministry. It will allow citizens of both countries to make seamless, secure and real-time transfers and payments using familiar mobile banking applications, UPI apps, and digital wallets. NPCI International Payments Ltd (NIPL), the international arm of India's NPCI, partnered with Nepal Clearing House Ltd (NCHL) to implement the digital payment link.
NCHL manages and operates Nepal's core national payment infrastructure. Also Read | India tightens QR-based digital payment security to boost UPI globally The Indian government said it is expected to enhance financial inclusion, facilitate faster remittances, and deepen people-to-people and business-to-business transactions between the two countries. Nepal is one of the largest recipients of remittances from India, with strong economic, cultural and social ties driving cross-border movement of people and funds. The finance ministry said the new payment corridor will eliminate the need for travellers to carry large amounts of cash or rely on traditional remittance channels that are often slower and more expensive.
The system will allow users to transfer funds instantly across the border using familiar, mobile-based interfaces. The government also expects the initiative to benefit merchants, particularly in Nepal, by giving them access to a large base of Indian visitors who increasingly rely on digital payments. Real-time settlement of transactions and lower dependence on cash handling are expected to improve operational efficiency for businesses. Cloud nine The launch further expands the global footprint of UPI, which has emerged as the backbone of India's digital payments ecosystem. It now works in nine foreign countries—Nepal, Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Qatar, Sri Lanka and Cambodia—allowing Indian travellers to make payments abroad using domestic payment apps.
NPCI data showed a record 23.2 billion UPI transactions worth ₹29.9 trillion were processed in May 2026, the highest monthly volume and value since the platform was launched in 2016. Transaction volume rose 24% year-on-year, while transaction value increased 19% year-on-year, highlighting the growing adoption of digital payments across the country. Also Read | Visa bets on cheaper tech and consumer choice to take on the UPI juggernaut
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