Nepali citizens working in India and Indian citizens employed in Nepal can now send money directly to their families using banking applications, following the launch of a new cross-border remittance service between the two countries.

The service followed technical integration between Nepal Clearing House Limited (NCHL) and the National Payments Corporation of India (NPCI), linking Nepal’s National Payments Interface (NPI) with India’s Unified Payments Interface (UPI).

With the two payment systems now connected, migrant workers on both sides of the border can transfer funds directly through their bank accounts without relying on traditional remittance channels.

The service was opened for person-to-person (P2P) transfers in its first phase. Initially, only Nepali citizens residing or working in India and Indian citizens working in Nepal will be eligible to use the facility.

According to Nepal Rastra Bank, the service is currently available through several Nepali banks. Funds can be both sent and received through Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank and Nepal SBI Bank. Customers of Himalayan Bank, NMB Bank and Siddhartha Bank can receive transfers through the system.

Under the arrangement, users can send up to INR 200,000 per transaction from India to Nepal, with no monthly limit imposed. Transfers from Nepal to India are capped at INR 15,000 per transaction and a maximum of INR 100,000 per month. A service charge of INR 150 has been set for each transaction.

Speaking to Kantipur Television, Nepal Rastra Bank spokesperson Guru Prasad Paudel said the system would allow Nepali workers in India to send money home through banking channels and mobile devices at a lower cost.

According to him, the facility is expected to discourage informal and illegal money transfer networks such as hundi while providing greater security for migrant workers’ earnings.

“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,” Paudel said. “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.”

NCHL Chief Executive Officer Neelesh Man Singh Pradhan said the service is fully digital and operates in real time.

Nepal and India conduct annual financial transactions worth an estimated $1.5 billion to $2 billion. Pradhan said many migrant workers still carry cash across the open border, exposing themselves to security risks.

“Digital transfers will reduce the risks associated with carrying cash across the border and make transactions more transparent,” he said. “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.”

In a statement, Nabil Bank said the formal launch of the cross-border remittance service marks a significant step towards faster and more convenient payments between the two countries.

The bank said Indian citizens holding accounts with Nabil Bank can use its mobile banking application, N Bank, to transfer money to India.

Nabil Bank Chief Executive Officer Manoj Kumar Gyawali described the initiative as an important milestone in making cross-border payments quicker and more accessible.

Pradhan said users of non-bank payment applications in India, including Google Pay, Paytm and PhonePe, would also be able to use the service, provided those platforms are linked to a bank account.

At present, eight Nepali banks are directly connected to the system. Nepal Rastra Bank said efforts are underway to gradually bring all banks and financial institutions in the country onto the platform.

The central bank believes the initiative will help modernise financial transactions between Nepal and India while promoting greater transparency, efficiency and formalisation of cross-border money transfers.