UPI-NPI Corridor Launched for India-Nepal Remittances

India and Nepal launched a cross-border peer-to-peer remittance link by integrating the Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI) on 6 June 2026. The system became operational on 6 June 2026 and was announced by India’s finance ministry on 11 June 2026.

UPI and NPI

The Unified Payments Interface is India’s real-time payment system developed by the National Payments Corporation of India (NPCI). The National Payments Interface is Nepal’s domestic digital payment system for bank transfers and wallet-based transactions.

Implementation and Operating Entities

NPCI International Payments Ltd (NIPL), the international arm of NPCI, partnered with Nepal Clearing House Ltd (NCHL) to implement the payment link. The corridor uses mobile banking applications, UPI apps, and digital wallets for cross-border transfers.

Transaction Features

The corridor enables instant transfers between citizens of both countries through familiar digital payment channels. Users in India can send money to Nepal using recipients’ mobile numbers or Virtual Payment Addresses (VPAs), while Indian users in Nepal can send money to India using UPI IDs.

Geographical and Financial Context

Nepal became the second country after Singapore to achieve payment-system-level peer-to-peer connectivity with UPI. UPI’s international footprint now covers nine countries, namely Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Qatar, Sri Lanka, Cambodia, and Nepal.

Bank Participation

The service is live through select banks in Nepal. Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank, and Nepal SBI Bank are enabled for sending, while Himalayan Bank, NMB Bank, and Siddhartha Bank are enabled for receiving.

Important Facts for Exams

• UPI is a real-time payment system developed by NPCI in India.
• NPI is Nepal’s national digital payment infrastructure.
• NIPL stands for NPCI International Payments Ltd.
• NCHL stands for Nepal Clearing House Ltd.

Cross-Border Remittance

Cross-border remittance refers to the transfer of money across national borders through banking or digital payment systems. The UPI-NPI corridor is designed for faster and more affordable remittances between India and Nepal.