Nepal and India Launch Person-to-Person Digital Payment Service, QR Payment Feature Still Pending

Following discussions between Nepal’s Foreign Minister Shisir Khanal and India’s External Affairs Minister S. Jaishankar, a person-to-person digital payment service has been initiated between Nepal and India. This system allows Indians residing in Nepal to send money to India; however, the service is not yet available for Nepalis. The service is being implemented as per the agreement made during former Prime Minister Pushpa Kamal Dahal’s visit to India in Jestha 2080 (May-June 2023). Kathmandu, 24 Jestha.

Foreign Minister Shisir Khanal noted that during his visit to India, the digital payment agreement with his Indian counterpart Dr. S. Jaishankar does not currently enable Nepalis to make QR code payments in India. The Ministry of Foreign Affairs has stated that during talks with Indian Foreign Minister Jaishankar on Saturday, an agreement was reached to start an inter-country digital payment service.

Returning from the India visit, Minister Khanal confirmed that peer-to-peer (P2P) remittances digitally between the two countries are now possible. However, merchant payments via QR codes for Nepalis in India will be introduced in a subsequent phase. Since Saturday, Indians residing in Nepal can send money directly to their relatives’ bank accounts in India through mobile banking or Connect IPS platforms during Khanal’s visit.

This transaction service commenced on Saturday, informed Nileshman Singh Pradhan, CEO of Nepal Clearing House Limited (NCHL). “Payments between individuals via mobile banking and IPS have started,” said Pradhan. “This service will be used by Indians residing in Nepal and Nepalis in India, but a facility allowing Nepalis to send money to India directly is not yet available.”