RBI, Nepal's central bank ink deal on UPI integration

RBI, Nepal's central bank ink deal on UPI integration:

The Reserve Bank of India and Nepal Rastra Bank on February 15 signed and exchanged terms of reference for the integration of fast payment systems of India and Nepal through the Unified Payments Interface (UPI) of India and the National Payments Interface (NPI) of Nepal.

The RBI said in a press statement that the integration aims to facilitate cross-border remittances between India and Nepal by enabling users of the two systems to make instant, low-cost fund transfers.

"The collaboration between India and Nepal in linking their fast payment systems through the UPI-NPI linkage will further deepen financial connectivity and reinforce the enduring historical, cultural, and economic ties between the two countries," the RBI press statement read.

The Indian central bank further said that based on the terms of reference exchanged between RBI and NRB, necessary systems will be put in place for the interlinking of UPI and NPI.

"The formal launch of the linkage, that is the commencement of operations, will be done at a later date," the RBI statement added.

Earlier, on February 12, the Unified Payments Interface (UPI) was launched in Sri Lanka and Mauritius adding to the growing list of countries where the payments system is either acceptable or linked to their own fast-payments network.

"Given India's robust cultural and people-to-people linkages with Sri Lanka and Mauritius, the launch will benefit a wide cross-section of people through a faster and seamless digital transaction experience and enhance digital connectivity between the countries," the Government of India said in a statement on February 11.