The Reserve Bank of India (RBI) has inked terms of reference (ToR) with Nepal Rastra Bank to integrate India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI) for cross-border remittances.
The financial regulators of India and Nepal signed and exchanged Terms of Reference to integrate cross-border payments between the two nations. The integration aims to facilitate cross-border remittances between India and Nepal by allowing users of both systems to make quick, low-cost financial transfers.
“India and Nepal's engagement in combining their fast payment systems through the UPI-NPI linkage will expand financial connectivity and reinforce the two nations' longstanding historical, cultural, and economic links," reads the RBI statement.
According to the announcement, the essential systems for interlinking UPI and NPI would be implemented shortly. However, the formal launch of the connectivity, i.e. the start of operations, will occur at a later date.
UPI in Seven Nations
Notably, Indians can now use UPI to pay in seven countries, including Nepal. Following its inception in Sri Lanka and Mauritius, UPI payments are now accepted in France, the UAE, Singapore, Bhutan, and Nepal.
Following the announcement, MyGovIndia published a world map displaying the countries where Indians can use UPI to make payments.
The National Payments Corporation of India (NPCI) launched UPI in 2016, and it has quickly acquired traction. The growing use of UPI highlights the critical need for secure, efficient, and user-friendly payment solutions. Bhutan became the first country to use UPI in 2021.
Volker Wissing, Germany's federal minister for digital and transport, used UPI to pay at a vegetable market in the city last August. Following that, the German embassy cited digital infrastructure in India as one of its success stories and published a video of Wissing utilizing UPI.
