NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), on 9 June 2025 launched a live cross-border payment linkage between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI), enabling real-time, low-cost, and secure money transfers between the two countries. The integration, developed in partnership with Nepal Clearing House Limited (NCHL), marks a significant leap in digital financial connectivity across the India-Nepal corridor.

How the System Works

With the UPI-NPI linkage now operational, users in both India and Nepal can conduct seamless person-to-person (P2P) transactions using mobile numbers, virtual payment addresses (VPAs), or UPI IDs — without sharing sensitive bank account details. The system enables real-time settlement, which is expected to significantly reduce transaction costs compared to traditional remittance channels and deliver faster fund access, particularly for families dependent on timely cross-border transfers.

Current Rollout and Expansion Plans

The facility is currently live through select banks in both countries and is expected to be extended to a wider network of financial institutions in subsequent phases. The phased rollout approach mirrors earlier UPI international expansions, where initial bank-level pilots were followed by broader ecosystem onboarding.

What the Leaders Said

Ritesh Shukla, MD and CEO of NPCI International, said the launch reflects the organisation's commitment to innovation that meets the evolving needs of global communities. He described the initiative as creating 'a real-time, affordable and secure corridor for cross-border remittances, simplifying the process for families in both countries while also promoting financial inclusion.'

Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL, called the launch 'a testament to close collaboration and a shared commitment to making cross-border fund transfers seamless, real-time and convenient.' He added: 'As we embark together on a digital payments journey, we look forward to adding more services and ensuring inclusion for millions of people and businesses on both sides.'

Broader Significance

The UPI-NPI linkage aligns with the G20 agenda to make cross-border payments more accessible, efficient, and affordable — an objective that gained momentum during India's G20 Presidency in 2023. Notably, India has already linked UPI with payment systems in Singapore, UAE, Bhutan, and several other nations, and the Nepal integration adds a strategically important bilateral corridor given the large volume of remittances flowing between the two countries. The NPCI International-NCHL partnership is also being positioned as a potential model for similar cross-border interoperability arrangements in other regions.

Impact on Citizens and Businesses

The corridor is expected to benefit Nepali workers and students in India as well as Indian businesses operating in Nepal, who currently rely on costlier and slower formal remittance channels or informal networks. By bringing remittances onto a regulated, real-time digital rail, the linkage could also improve financial traceability and inclusion for underserved populations on both sides of the border.