India-Nepal remittance link goes live: How users can send money instantly across borders

India and Nepal have operationalised a new real-time cross-border remittance corridor that allows eligible users to send money between the two countries using mobile numbers, virtual payment addresses (VPAs) and UPI IDs, eliminating the need to share bank account details.

The service, launched by NPCI International Payments Ltd. (NIPL), the international arm of the National Payments Corporation of India, in partnership with Nepal Clearing House Ltd. (NCHL), connects India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI).

The linkage enables person-to-person (P2P) transfers

and is currently available through select banks, with plans to expand the service to more financial institutions over time.

For users, the biggest change is convenience. Indians sending money to family members in Nepal can now transfer funds using the recipient's mobile number or VPA. Similarly, Indian users in Nepal can remit money back to India through UPI IDs. Transactions are processed in real time, reducing delays associated with traditional remittance channels.

The development is particularly significant given the close economic and social ties between the two neighbouring countries. Thousands of workers, students and families regularly move money across the India-Nepal border, often relying on remittance services for household expenses, education costs and emergency support.

According to NPCI International and NCHL, the new payment corridor is designed to offer a secure, transparent and lower-cost alternative to conventional cross-border transfers. By connecting the fast payment systems of both countries, the initiative seeks to improve financial inclusion while reducing friction in cross-border transactions.

The launch also adds Nepal to the growing network of countries where India's digital payment infrastructure is being linked with local systems. Over the past few years, UPI has expanded its international footprint through payment acceptance and cross-border payment partnerships across several markets.

The India-Nepal linkage is expected to benefit individuals who depend on timely remittances by enabling instant settlement of funds while reducing the need for sharing sensitive banking information. Officials from both organisations said the project could serve as a model for future interoperable real-time payment systems between countries.

The service is now live through participating banks, with broader availability expected as additional institutions join the network.