Cross-Border Payments · Nepal-India · Updated August 2026
Since June 2026, sending money between Nepal and India no longer requires a wire transfer, a remittance counter, or a forex agent for many everyday amounts. Here is exactly how the new UPI-NPI mobile transfer corridor works, what it costs, and who can use it today.
Millions of people move between Nepal and India every year for work, study, trade and family visits, and for just as long, sending money across that border has meant cash, informal couriers, or remittance operators charging a cut on every transfer. That changed on 6 June 2026, when Nepal Rastra Bank and the Reserve Bank of India, working through Nepal Clearing House Limited (NCHL) and NPCI International Payments Limited (NIPL), switched on a direct link between India's Unified Payments Interface (UPI) and Nepal's National Payments Interface (NPI). For the first time, a person in Nepal can send money to a UPI ID in India, and a person in India can send money to a mobile banking account in Nepal, in real time, from an ordinary mobile banking app.
Quick answer
The UPI-NPI link lets people in Nepal and India send money to each other instantly through mobile banking apps, using a phone number, UPI ID or Virtual Payment Address instead of full bank account details. It went live on 6 June 2026. Nepal-to-India transfers are currently capped around INR 15,000 per transaction and INR 100,000 per month, with a flat NCHL fee of about NPR 240 per transfer. India-to-Nepal transfers can go up to INR 200,000 per transaction. Only a handful of banks support it so far, so check with your bank before assuming it is available on your account.
What launched, and when
The corridor is a peer-to-peer (P2P) real-time remittance mechanism, not a new app. It works inside your existing mobile banking app or Nepal's connectIPS app, and inside participating Indian bank apps, once the two systems recognize each other. The groundwork was laid over several years: NPCI and NCHL first signed a cooperation agreement in 2023, RBI and NRB signed the formal terms of reference in February 2024, and the service was operationalized between 6 and 9 June 2026. With Nepal's addition, UPI is now usable across nine countries: Singapore, the UAE, France, Mauritius, Bhutan, Qatar, Sri Lanka, Cambodia and Nepal, though Nepal is the first corridor built for two-way peer-to-peer transfers rather than one-way merchant payments by travelers.
Limits and fees are set by NCHL, NPCI and individual participating banks, and have been reported with some variation across sources as the service rolls out. Always confirm the current limit and fee inside your own banking app before sending a large amount.
How a transfer actually works
The exact screens differ slightly by bank, but Nepal Clearing House Limited describes a consistent five-step flow for sending from a Nepali mobile banking app or connectIPS.
Log in
Open your mobile banking app or the connectIPS app and log in as usual.
Enable cross-border service
If this is your first cross-border transfer, you will be asked to give consent to enable the service on your account.
Select cross-border fund transfer
From the transfer menu, choose Fund Transfer, then Cross-Border Fund Transfer.
Enter beneficiary details
Provide the recipient's UPI ID, VPA or registered mobile number, depending on what the app asks for. You generally do not need their full bank account number.
Enter the amount and confirm
Type the amount in Nepalese Rupees. The app converts and displays the equivalent Indian Rupee amount before you confirm. The transfer settles in real time once confirmed.
Sending in the other direction works the same way from the Indian side: a UPI user in India can pay a Nepali beneficiary using that person's mobile number or VPA, without needing an IFSC code or account number.
Limits and fees
Because the service is new and still expanding to more banks, reported limits have varied slightly between official statements and press coverage. The figures below reflect the most consistently reported numbers as of August 2026; treat them as a starting point and confirm the current cap inside your own app, since NCHL, NPCI and individual banks can revise limits as the corridor matures.
| Direction | Per-transaction limit | Monthly limit | Reported fee |
|---|---|---|---|
| Nepal to India | Up to INR 15,000 | INR 100,000 | Flat fee of about NPR 240 (NCHL) |
| India to Nepal | Up to INR 200,000 | Not consistently reported as capped | Set by the sending Indian bank; check your bank's tariff |
Before you send
Some early coverage of the service mentions a lower daily limit for certain banks or apps. Limits, daily caps and fees can differ by bank even though the underlying NPI-UPI rail is the same, so check the confirmation screen in your own app rather than relying on any single published number, including this one.
Which banks and apps support it
Not every bank in Nepal or India is connected yet. Coverage is expanding, so this list is a snapshot rather than a permanent roster.
| Side | Send and receive | Receive only |
|---|---|---|
| Nepal | Everest Bank, Global IME Bank, Machhapuchchhre Bank, Nabil Bank, Nepal SBI Bank, connectIPS app | Himalayan Bank, NMB Bank, Siddhartha Bank (reported as receive-enabled by some banks) |
| India | 18 banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Punjab National Bank | — |
If your bank is not on this list yet, that does not mean the service will never reach you. NCHL and NPCI have both said additional banks and service providers are being added on both sides as the corridor scales up.
Who benefits most
Migrant workers and families
Smaller, frequent remittances for daily needs, school fees or medical costs can move instantly instead of waiting on a money transfer operator's processing time, within the current transaction caps.
Cross-border travelers
Indian visitors to Nepal, and Nepali visitors to India, can pay or receive money without carrying cash, exchanging currency at the border, or paying a forex counter's spread.
Border-town businesses
Nepali merchants near the open border gain access to a large pool of Indian customers who already pay by UPI at home, without needing a separate India-specific payment setup.
Students and short-term visitors
Family members can top up a student's or visitor's expenses directly and instantly, rather than routing funds through a third-party agent or a slower international transfer.
How it compares with traditional remittance channels
Traditional options for sending money between Nepal and India, bank wire transfers, licensed money transfer operators, or informal cash couriers, typically involve either a flat or percentage-based fee, a processing delay of hours to days, and in the case of informal channels, no dispute protection at all. The UPI-NPI corridor settles in real time, uses a phone number or VPA instead of full account details, and runs through regulated banking rails on both sides. Its current limitation is capacity: with per-transaction and monthly caps in the low thousands of rupees, it currently suits everyday remittances and travel spending far better than it suits large one-off transfers, which still belong with a bank wire or a licensed remittance provider.
Mistakes to avoid
Assuming every bank supports it
The corridor launched with a limited set of participating banks on both sides. Confirm your specific bank offers cross-border UPI-NPI transfers before promising a family member a transfer will arrive this way.
Trying to send a large amount in one transaction
The reported per-transaction and monthly caps mean this corridor is not yet a substitute for a bank wire when moving a large sum, such as tuition for a full semester or a property-related payment.
Entering the wrong VPA or mobile number
Because transfers use a UPI ID, VPA or phone number instead of a full account number, a typo sends money to the wrong person just as easily, and reversing a peer-to-peer transfer already accepted by the recipient's bank can be difficult or impossible. Double-check the beneficiary name shown on the confirmation screen before you approve.
Good habit
For your first transfer to a new recipient, send a small test amount within the daily limit before sending a larger one, and confirm with the recipient that it arrived and matched the correct name.
Frequently asked questions
When did the Nepal-India UPI-NPI remittance service launch?
It became operational on 6 June 2026, connecting India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI) through Nepal Clearing House Limited and NPCI International Payments Limited.
Do I need a UPI app to use this from Nepal?
No. From Nepal, you use your own bank's mobile banking app or the connectIPS app, once your bank has enabled the cross-border transfer feature. You do not need to install an Indian UPI app.
How much money can I send from Nepal to India?
Reported limits are up to INR 15,000 per transaction and INR 100,000 per month, though this can vary by bank and may change as the service expands. Confirm the current limit in your own app before sending.
Is there a fee for sending money through the UPI-NPI link?
Nepal Clearing House Limited has reported a flat fee of about NPR 240 for a Nepal-to-India transfer. Fees on the India-to-Nepal side depend on the sending bank, so check your bank's published tariff.
Do I need the recipient's bank account number to send money?
No. Transfers use identifiers such as a registered mobile number, a UPI ID or a Virtual Payment Address, so neither party needs to share full bank account details.
Can I use this for a large remittance like tuition fees or a big family transfer?
Not comfortably yet. The current per-transaction and monthly caps are designed for everyday remittances and travel spending. For large one-off transfers, a bank wire or a licensed remittance operator remains the more suitable option until limits increase.
What happens if I send money to the wrong UPI ID or number?
As with domestic UPI transfers, a peer-to-peer transfer that has already been accepted by the recipient's bank can be very difficult to reverse. Always verify the beneficiary name shown on the confirmation screen before approving a transfer.
The bottom line
The UPI-NPI link is the first payment corridor to let people in Nepal and India send money directly to each other's mobile banking accounts in real time, and it is a genuine improvement over cash, informal couriers and slower remittance channels for everyday amounts. It is not yet a full replacement for traditional remittance for large transfers, and coverage across banks is still expanding. The practical move for most readers is straightforward: check whether your bank supports it, understand the current limits before you rely on it for something time-sensitive, and treat it, for now, as a fast lane for small, frequent transfers rather than a one-size-fits-all remittance solution.
Discussion