Key Points
- India and Nepal launch direct UPI-NPI payment link
- System enables real-time mobile transfers between both countries
- UPI now accepted in nine countries for Indian travellers abroad
India and Nepal have launched a direct link between their national payment systems, enabling citizens of both countries to send money across the border in real time using mobile phones. The peer-to-peer cross-border remittance mechanism went live on 6 June 2026.
The system connects India’s Unified Payments Interface (UPI) — the instant payment platform that processes billions of transactions monthly within India — with Nepal’s National Payments Interface (NPI).
Users in either country can now transfer funds directly through mobile banking applications and digital wallets without relying on traditional banking channels or carrying physical currency.
How the UPI-NPI link works
The technical integration was built through a collaboration between NPCI International Payments Limited (NIPL), the overseas arm of the National Payments Corporation of India, and Nepal Clearing House Limited (NCHL).
NIPL manages India’s cross-border UPI partnerships, while NCHL operates Nepal’s central payment infrastructure.
The linkage allows transfers to settle in real time rather than through correspondent banking networks that typically take one to three business days.
For Indian tourists visiting Nepal, the system removes the need to exchange currency at airports or carry large amounts of cash. Nepali merchants accepting payments from Indian visitors will receive funds directly into their accounts.
Remittance corridor between India and Nepal
Nepal has historically been one of the largest recipients of remittances from India, driven by labour migration and family ties across the open border.
The new payment corridor is intended to reduce the cost and friction of these transfers, though specific transaction limits and fee structures were not disclosed in the announcement.
For Nepali businesses in tourist areas, the integration provides access to Indian visitors who are already accustomed to paying via QR codes and mobile apps. Merchants will be able to accept UPI payments and receive settlements in Nepali rupees without handling foreign currency.
India’s expanding UPI footprint abroad
The Nepal linkage adds to India’s growing network of international UPI corridors. Indian travellers can currently use UPI for payments in nine countries: Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia.
Each country partnership operates through bilateral agreements between NIPL and the respective national payment operator.
The expansion reflects India’s strategy to position UPI as a viable international payment rail, building on its domestic success where the system processed over 14 billion transactions in a single month in early 2026.
The India-Nepal corridor is the first to enable peer-to-peer transfers in both directions, rather than only merchant payments by Indian tourists abroad. This two-way capability could serve as a model for future bilateral payment agreements.
Your Questions, Answered
How does the India-Nepal UPI-NPI payment link work?
The system connects India's Unified Payments Interface with Nepal's National Payments Interface, allowing users in either country to send money directly through mobile banking apps. Transfers settle in real time rather than through traditional banking channels.
When did the India-Nepal cross-border payment system launch?
The peer-to-peer remittance mechanism between India and Nepal went live on 6 June 2026.
Which organisations built the India-Nepal payment link?
NPCI International Payments Limited, the overseas arm of India's National Payments Corporation, partnered with Nepal Clearing House Limited to build the technical integration.
Which countries accept UPI payments from Indian travellers?
UPI is accepted in nine countries: Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia.
