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ARTICLE AD BOX
The cross-border digital payment link 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.
UPI now works in nine foreign countries: Nepal, Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Qatar, Sri Lanka and Cambodia.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 National 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.
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.
About the Author
Harsh Kumar
Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.
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