India and Nepal have launched a peer-to-peer (P2P) cross-border remittance facility, marking a significant step towards deeper financial and digital integration between the two neighbouring countries.

The newly introduced system connects India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI), enabling users to transfer money instantly, securely, and directly through mobile banking applications and digital wallets.

The initiative is expected to simplify cross-border payments, improve financial inclusion, and strengthen economic ties by providing a faster and more convenient alternative to traditional remittance channels. The linkage has been implemented through a collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).

The platform offers several benefits, including real-time fund transfers, reduced dependence on cash transactions, lower transaction friction for travellers, and enhanced payment convenience for individuals and businesses operating across the India-Nepal corridor.

For merchants in Nepal, the integration is expected to support higher transaction volumes by enabling easier payments from Indian visitors, while also reducing the costs and risks associated with cash handling. The system will also help travellers avoid currency exchange-related hassles and provide a seamless digital payment experience.

The launch further strengthens India's growing international digital payments network. UPI is currently accepted in multiple countries, including Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia, expanding the reach of India's digital payment ecosystem and facilitating easier cross-border transactions for users.