The revolutionary cross-border digital payment between Nepal and India has begun. The long-awaited electronic payment service came into being after an agreement between Nepal’s FonePay and India’s National Payments Corporation of India (NPCI). With this, users from both countries will be able to scan QR codes and pay on their smartphones thanks to the implementation of the Unified Payments Interface (UPI).
Users can use mobile banking apps and digital wallets to pay at merchants, restaurants, cinemas, hotels, departmental stores, etc. But this has become possible with years of planning and action. Earlier, Nileshman Singh Pradhan, Chief Executive Officer (CEO) of Nepal Clearing House Limited (NCHL), the operator of the government payment system on behalf of Nepal, and Ritesh Shukla, CEO of NPCI on behalf of India, had signed the agreement papers for this same initiative. Likewise, PM Pushpa Kamal Dahal “Prachanda” and his Indian counterpart Narendra Modi also substantiated developments during the former’s last visit to India.

Digital payments can be initiated in both countries through NCHL in Nepal and NPCI-affiliated banks financial institutions and payment platforms in India. Prior to this, only a card payment facility was in place for the two neighboring South Asian countries.
Easier payment for citizens of both Nepal and India
The cross-border payment allows the citizens of both Nepal and India to make payments in each other’s country. Indian nationals can pay in Nepal using FonePay’s QR codes using eSewa, Khalti, or mobile banking app. For Nepalese, they will have to wait a bit longer. Nepal Rastra Bank is releasing a directive very soon. Only after this, Nepalese will also be able to pay digitally in India.
Likewise, popular Indian platforms like Paytm, PhonePe, Google Pay, etc. will allow transferring money to any bank or digital wallet in Nepal instantly. Indian users can pay with those apps or scan FonePay QR or other codes when they are in Nepal.

There is also a transaction limit for Nepali citizens visiting India. They can withdraw up to Rs 15,000 a day and up to Rs 1 lakh a month from ATM. Although, for medical reasons, this restriction won’t apply.
What has been said?
Biswas Dhakal, chairman of FonePay and chairman of F1Soft Group said, “The launch of this cross-border payment system is an important step towards enhancing financial connectivity between Nepal and India using technology for the benefit of the citizens of both countries. I am confident that this initiative will contribute significantly to the development of trade, tourism, and economic relations between the two countries and ultimately promote prosperity and development.”
Chief Operation Officer (COO) Paras Kunwar said the QR codes which will facilitate cross-border payments are interoperable. He shared that to use FonePay QR for payment, Nepalese banks financial institutions, and mobile wallets must submit an application. After this, the PSO will grant approval enabling Nepali nationals to pay digitally in India.
Also read: Digital Wallets Can Merge as NRB Clears The Way for PSPs and PSOs
Another Milestone For the Digital Economy
The transaction interoperability between Nepali and Indian mobile payment platforms will be another milestone for a cashless economy. Implementation of UPI Nepal will greatly influence the digital economy and help realize the government’s Digital Nepal framework. A huge number of Nepali and Indian citizens frequent between the two countries for work, travel, and studies. The cross-border payment will add a new dynamic to the two country’s relationship as well as promote the digital economy.