India and Nepal have launched a peer-to-peer (P2P) cross-border remittance service by integrating India’s Unified Payments Interface (UPI) with Nepal’s National Payments Interface (NPI). This expands UPI’s international footprint, allowing Indian users to make digital payments abroad using a familiar platform. The initiative is part of the Indian government’s broader efforts to position UPI as a leading global payment network.
While UPI had already been enabled for certain use cases in Nepal—such as merchant payments for Indian travellers, in partnership with local payment networks—it operated as a one-way workflow in which Indian tourists could scan Nepalese QR codes to pay merchants. However, regular citizens could not make direct bank-to-bank personal transfers. This integration of UPI–NPI is designed specifically to support P2P cross-border remittances between individuals. Under this arrangement, individuals can send money instantly from an Indian bank account to a Nepalese bank account (and vice versa) using only a cell phone number or UPI ID.
GlobalData Remittance Analytics
India and Nepal have historically shared a strong relationship, often described as “roti-beti” (“ties of food and daughters”), supported by open borders. This development builds on that foundation by enabling citizens of both countries to send and receive money instantly. This is significant because India is the third-largest source of remittances to Nepal, totalling $2.2bn in 2024 as per GlobalData’s Remittance Analytics. At the same time, India receives the largest value of remittances from Nepal, totalling $2.3bn in 2024. The integration of UPI and NPI means users will be able to transfer remittances seamlessly with minimal friction through mobile banking apps and digital wallets, reducing dependence on cash and reserve currency.
Furthermore, the initiative will strengthen financial inclusion and deepen digital cooperation between the two countries by providing a faster, safer, and more affordable cross-border payment solution. It will also support greater cross-border economic activities by making transactions more convenient and accessible, reinforcing already strong bilateral ties that could encourage movement of human capital cross border.
This development means India’s UPI network is now accepted in nine countries, allowing Indian users to make digital payments abroad using a familiar platform—thus improving convenience and accessibility. This could encourage other countries to integrate UPI with their payment platforms. As India is among the fastest-growing emerging markets and has one of the largest overseas diaspora populations, such integration could enable broader collaboration with international businesses. This would benefit not only Indian firms but also international businesses by providing more direct access to one of the world’s largest markets.
