India and Nepal have officially launched a peer-to-peer (P2P) cross-border remittance mechanism on June 6, 2026, establishing a direct link between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI) platforms. As reported by the Finance Ministry, this partnership enables citizens of both nations to make real-time money transfers directly via mobile banking applications and digital wallets, eliminating the friction of physical currency exchange and carrying large amounts of cash. Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL, stated that the successful launch is a testament to close collaboration and commitment to making cross-border fund transfer seamless, real-time and convenient. The service is currently available through Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank and Nepal SBI Bank, with customers of Himalayan Bank, NMB Bank and Siddhartha Bank able to receive transfers through the system.
The cross-border remittance service operates under specific transaction limits for users from both countries. According to ABP Live, users from Nepal can send up to ₹15,000 per transaction with a monthly limit of ₹100,000, while users from India can send up to ₹200,000 per transaction with no monthly restriction. The service is currently available through select banks and will soon be expanded to additional financial institutions. As reported by ABP Live, the service aligns with the G20's goals for accessible and affordable cross-border payments, facilitating a direct connection between the fast-payment systems of both countries and reinforcing longstanding social, cultural, and economic bonds between India and Nepal.
The newly operationalised system provides enhanced traveller convenience by eliminating the friction of physical currency exchange, carrying large amounts of cash, or navigating unfamiliar foreign exchange fees. According to the Finance Ministry, the initiative would also give an economic boost for local merchants as Nepalese businesses gain immediate access to a massive Indian visitor demographic, driving higher transaction volumes. The ministry emphasized that this aligns perfectly with regional goals for accessible, safe, and affordable cross-border payments, reinforcing longstanding social and economic bonds between the two countries. UPI is now accepted in nine countries - Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia, enabling Indian travellers to make seamless payments abroad through familiar platforms.
The technical integration was executed via collaboration between NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, and the Nepal Clearing House Limited (NCHL). As reported by the Finance Ministry, the initiative strengthens financial inclusion, boosts digital and economic integration, and enhances convenience for travellers and businesses across both countries. The ministry noted that this represents a major advancement in financial inclusion, fostering stronger economic and digital ties between India and Nepal, with the service expected to be expanded to additional financial institutions in the coming months.
Nepal Foreign Minister Shisir Khanal described his three-day visit to India as 'fruitful', asserting that concrete steps were taken towards enhancing bilateral ties. According to reports from Business Standard, Khanal held wide-ranging talks with External Affairs Minister S Jaishankar and also met National Security Advisor Ajit Doval during his official visit from June 5-7. Speaking to media upon arrival at Tribhuvan International Airport, Khanal emphasized that fruitful discussions were held on matters pertaining to mutual cooperation in different areas, diplomacy and border dispute resolution.
