India and Nepal Open UPI-NPI Digital Corridor for Instant Transfers | Today’s news
India and Nepal have launched cross-border peer-to-peer (P2P) transfer by linking India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI), marking a major step towards enhancing digital financial connectivity and economic integration between the two countries.
The system went live on June 6 and was announced by the Indian Finance Ministry on Thursday. It will enable seamless and secure real-time transfers and payments to citizens of both countries using popular mobile banking apps, UPI apps and digital wallets.
NPCI International Payments Ltd (NIPL), the international arm of India’s NPCI, has partnered with Nepal Clearing House Ltd (NCHL) to implement digital payments connectivity. NCHL manages and operates the core national payment infrastructure of Nepal.
The Indian government said it is expected to boost financial inclusion, facilitate faster transfers 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 that drive the cross-border movement of people and funds.
The finance ministry said the new payment corridor will eliminate the need for travelers to carry large amounts of cash or rely on traditional money transfer channels, which are often slower and more expensive. The system will allow users to instantly transfer funds across borders using familiar mobile interfaces.
The government also expects the initiative to benefit merchants, especially 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 reliance on cash handling is expected to improve the operational efficiency of businesses.
Cloud nine
The launch further expands UPI’s global footprint, which has become the backbone of India’s digital payments ecosystem. It now operates in nine foreign countries – Nepal, Bhutan, Singapore, UAE, France, Mauritius, Qatar, Sri Lanka and Cambodia – allowing Indian travelers to make payments abroad using domestic payment apps.
NPCI data showed a record 23.2 billion UPI transactions in value ₹29.9 trillion were processed in May 2026, the highest monthly volume and value since the launch of the platform in 2016. Transaction volume grew by 24% year-on-year, while transaction value grew by 19% year-on-year, underscoring the growing adoption of digital payments across the country.
