Following the successful integration into the payment ecosystem of Mauritius, the Unified Payments Interface (UPI) is set to revolutionize cross-border payments in Nepal as well. In a significant development, the Reserve Bank of India (RBI) has inked terms of reference (ToR) with Nepal Rastra Bank to facilitate the integration of UPI with Nepal's National Payments Interface (NPI) for seamless cross-border remittances.
The collaboration between the banking regulators of India and Nepal signifies a milestone in financial connectivity between the two nations. Through this integration, users of both systems will be empowered to make instant, cost-effective fund transfers, enhancing the ease of remittance transactions between India and Nepal.
The move is expected to deepen the historical, cultural, and economic ties shared by the two countries, as stated in the RBI's official statement.
Although the necessary systems for interlinking UPI and NPI are yet to be fully established, the formal commencement of operations is slated for a later date. This strategic partnership marks another significant step towards leveraging technology to foster stronger bilateral relations and facilitate smoother financial transactions across borders.
Notably, this expansion further extends UPI's global footprint, enabling Indians to utilize the platform for payments in seven countries, including Nepal. With its previous launches in Sri Lanka and Mauritius, UPI payments are now accepted in France, UAE, Singapore, Bhutan, and Nepal, showcasing the platform's growing international relevance.
In response to this development, MyGovIndia shared a world map highlighting the countries where UPI payments are now accepted, underscoring the platform's increasing prominence on the global stage.
UPI, launched by the National Payments Corporation of India (NPCI) in 2016, has emerged as a game-changer in the digital payments landscape, offering a secure, efficient, and user-friendly payment solution. Its rapid adoption not only within India but also internationally underscores the urgent need for modernized payment methods tailored to meet evolving consumer needs.
Bhutan led the way by adopting UPI in 2021, paving the path for further international expansion. In a notable demonstration of its effectiveness, Germany's federal minister for digital and transport, Volker Wissing, utilized UPI for a payment transaction at a vegetable shop in India's national capital last August.
The incident garnered praise from the German embassy, highlighting India's robust digital infrastructure as a success story on the global stage.
Follow us
