Kathmandu: Nepal Rastra Bank (NRB) has introduced a groundbreaking measure allowing Indian nationals employed in Nepal to transfer money seamlessly using QR codes.
This innovative system permits deposits into personal accounts held in Indian banks and financial institutions through various electronic channels, including e-banking, interbank payments, mobile banking, and QR codes, facilitated by the ‘National Payment Switch.’
The NRB, by revising the unified instructions issued by its Foreign Exchange Management Department on Friday, has empowered banks to extend this service for salaries amounting to up to 15,000 Indian rupees per day and 100,000 INR per month.
Under this arrangement, compliance with local regulations regarding the operation of foreign exchange accounts is mandatory, as per the directives of the NRB. Similarly, adherence to the NRB’s stipulated conditions for opening and managing foreign currency accounts abroad is essential.
This significant development follows an agreement inked between Nepal and India for cross-border digital payments during Prime Minister Pushpa Kamal Dahal’s visit to India in May last year. Notably, an accord was reached between Nepal Clearing House and NPCI (National Payments Corporation of India) to facilitate cross-border digital payments. Nepal Clearing House, responsible for operating the National Payment Switch in Nepal, is currently gearing up its infrastructure to implement this agreement.
The NRB has swiftly adapted its policy framework to accommodate the regulatory requirements essential for the smooth execution of cross-border digital payments. This initiative marks a significant stride towards enhancing financial inclusivity and fostering stronger ties between Nepal and India in the realm of digital finance.