The Reserve Bank of India (RBI) has signed an agreement with Nepal's central bank to integrate UPI with the National Payment Interface of Nepal. The agreement was signed in the presence of RBI governor Shaktikanta Das and Nepali counterpart Maha Prasad Adhikari. This follows an agreement made two years ago by the National Payment Corporation of India's international arm to enable the deployment of UPI in Nepal.
The agreement's terms include establishing systems for integrating fast payment systems between India and Nepal. This integration aims to facilitate cross-border remittances by allowing users of both systems to make instant, low-cost fund transfers.
“The collaboration between India and Nepal in linking their fast payment systems through the UPI-NPI linkage will further deepen financial connectivity and reinforce the enduring historical, cultural, and economic ties between the two countries,” RBI said in a statement. The necessary systems will be put in place for interlinking of UPI and NPI soon. The formal launch of cross-border UPI operations will be done at a later date.