India’s UPI Platform in Nepal

The first country to adopt India’s UPI system will be Nepal which will be critical in modernising the neighbouring country’s digital economy.

Overview:

To deliver the services in Nepal, NPCI International Payments Ltd (NIPL), NPCI’s international arm, has partnered with Manam Infotech and Gateway Payments Service (GPS). In Nepal, GPS is the authorized payment system operator, and Manam Infotech will implement the Unified Payments Interface (UPI) there.

Purpose of the collaboration

According to NPCI, the collaboration will benefit Nepal’s greater digital public good by strengthening interoperable real-time person-to-merchant (P2M) and person-to-person (P2P) transactions in the neighbouring country. This collaboration will allow the citizens of Nepal’s last-mile consumers to benefit from an interoperable, open payment system that enables real-time financial transfers between merchant payments and bank accounts.

It will open the way for real-time cross-border P2P transfers between Nepal and India in the future. UPI’s real-time payment system can help accelerate Nepal’s financial inclusion process while also expanding business opportunities.

It will aid in the modernization of Nepal’s digital payment infrastructure and provide citizens with the convenience of digital payments.

About NPCI

The Reserve Bank of India’s specialized section, the National Payments Corporation of India which was founded in the year 2008 is managed by the Ministry of Finance of the Government of India. It was established by the Reserve Bank of India to manage India’s retail payment and settlement systems.

About NPCI International Payments Limited (NIPL)

NPCI has established a separate business to market its product internationally. Countries in Africa, Asia, and the Middle East have approached NPCI to strengthen their payment infrastructure. NIPL wants closer cooperation with international partners in areas such as cross-border remittance, UPI implementation, and the use of indigenously produced technologies in digital payments.

Month: Current Affairs - February, 2022

Category: Economy & Banking Current Affairs