KATHMANDU - Nepali citizens working in India and Indian nationals employed in Nepal can now send money directly to their families through banking applications following the launch of a new cross-border remittance service between the two countries.
The service was introduced after Nepal Clearing House Limited (NCHL) and the National Payments Corporation of India (NPCI) completed technical integration between Nepal’s National Payments Interface (NPI) and India’s Unified Payments Interface (UPI).
The linkage allows migrant workers on both sides of the border to transfer funds directly between bank accounts without relying on traditional remittance operators.
The service is currently available for person-to-person (P2P) transfers in its initial phase.
Only Nepali citizens residing or working in India and Indian citizens employed in Nepal are eligible to use the facility at present.
According to Nepal Rastra Bank, customers of Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank and Nepal SBI Bank can both send and receive funds through the system.
Customers of Himalayan Bank, NMB Bank and Siddhartha Bank can currently receive transfers.
Under the arrangement, users can send up to INR200,000 per transaction from India to Nepal without any monthly limit.
Transfers from Nepal to India are capped at INR15,000 per transaction and INR100,000 per month.
Each transaction carries a service charge of INR150.
Nepal Rastra Bank spokesperson Guru Prasad Paudel said the system would allow Nepali migrant workers in India to transfer money home through formal banking channels at a lower cost.
“Previously, workers had to depend on remittance companies. Now they can transfer money directly to family members through the banking system and mobile banking platforms.
“We have a clear mechanism in place to address any problems and resolve disputes. There are also provisions specifying the timeframe within which unsuccessful transactions must be settled,” he said.
Paudel said the facility is expected to reduce dependence on informal money transfer networks such as hundi while improving security and transparency.
NCHL Chief Executive Officer Neelesh Man Singh Pradhan described the service as a fully digital, real-time payment system.
He noted that many migrant workers still carry cash across the open Nepal-India border, exposing themselves to theft and other security risks.
“Digital transfers will reduce the risks associated with carrying cash across the border and make transactions more transparent.
“NCHL and NPCI will handle transaction processing, while the movement of funds and settlement will be managed by the respective banks in Nepal and India,” he said.
In a statement, Nabil Bank described the launch as a significant step towards faster and more convenient cross-border payments.
The bank said Indian nationals holding accounts with Nabil Bank can use its N Bank mobile application to transfer money to India.
Nabil Bank Chief Executive Officer Manoj Kumar Gyawali said the initiative would make cross-border payments quicker and more accessible.
Pradhan added that users of Indian payment applications such as Google Pay, Paytm and PhonePe would also be able to utilise the service, provided the applications are linked to bank accounts.
Currently, eight Nepali banks are directly connected to the platform.
Nepal Rastra Bank said efforts are underway to gradually connect all banks and financial institutions in the country to the system.
The central bank believes the initiative will modernise financial transactions between Nepal and India while promoting greater transparency and efficiency in cross-border money transfers.
India remains one of the largest destinations for Nepali migrant workers due to the open-border arrangement between the two countries, which allows citizens to live and work across the border without requiring visas or work permits.
Millions of Nepalis are estimated to work in India, particularly in construction, hospitality, security services and informal sectors. At the same time, Indian nationals are also employed in various industries in Nepal.
