New Delhi– Despite India and Nepal signing a memorandum of understanding over a year ago to enable cross-border digital payments, a one-sided implementation has persisted. Indian visitors in Nepal have been using UPI-enabled apps to pay via QR codes since mid-2023, but Nepali citizens are still unable to use the same facility while in India.
Nepali officials attribute the delay to reluctance on the Indian side, despite Nepal’s technical readiness and successful test runs. Nepal Rastra Bank has already approved the initiative, and trials like the one conducted by Nabil Bank in Mumbai last year have proven functional. Yet, the official rollout for Nepalis in India—initially scheduled for early 2025—remains stalled with no clear timeline.
According to Nepali officials privacy to the matter, the official launch of QR-code-based payments in India has been delayed due to reluctance on the Indian side.
One key challenge lies in the difference in transaction models between the two countries. In India, QR-based payments are typically free for users, whereas in Nepal, Indian users are charged a minimal 1.95% merchant fee per transaction. To make the system viable in India for Nepalis, commissions would need to be paid to Nepali banks, which currently lacks a sustainable framework.
In March 2025, officials announced that a pilot phase allowing Nepalis to scan and pay in India would begin within two months. However, there has been no visible progress, raising concerns about commitment to cross-border digital inclusivity.
The original agreement, signed on June 1, 2023, between Nepal Clearing House Limited (NCHL) and India’s NPCI International Payments Limited, was intended to ease transactions for tourists, businesses, and students. But while the vision was bilateral, the execution so far remains largely one-directional.
As bilateral tourism and trade grow, the inability of Nepalis to make seamless payments in India—while Indians enjoy full access in Nepal—raises questions about parity and reciprocity in digital finance cooperation between the two neighbours.
