Mumbai, June 9: India and Nepal have signed a Memorandum of Understanding (MoU) to fully implement cross-border digital payments. This agreement was made during the visit of Nepal’s Foreign Minister Shisir Khanal to India on June 7. The MoU aims to connect India’s Unified Payments Interface (UPI) with Nepal’s National Payment Interface (NPI).
With this agreement, citizens of Nepal will be able to make digital payments in India, and Indian citizens can do the same in Nepal using their mobile devices. This initiative will facilitate personal remittances and other payments across the border.
Previously, Indian citizens faced transaction charges ranging from 1.3% to 2% when making payments in Nepal. However, since January 2020, the UPI service has been free for Nepali citizens in India. Following the MoU, any extra charges will be borne by International Payment Limited (India) and Nepal Clearing House Limited (Nepal).
Since March 2024, Indian tourists in Nepal have been able to make UPI-based QR payments. This MoU will further simplify payment processes in both countries. In 2023, India had signed an MoU for digital payments and remittances, which is now set to be operationalized.
Additionally, India’s External Affairs Minister S. Jaishankar and Nepal’s Foreign Minister Shisir jointly launched the linkage between UPI and NPI to facilitate cross-border personal remittances.
In a related development, on June 8, the West Bengal government signed an MoU with the National Health Authority (NHA) to implement the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) in the state, marking West Bengal as the 36th state to adopt this health initiative.