Nepal-India Mobile Fund Transfer Service Officially Goes Live

KATHMANDU – In a massive boost for cross-border digital finance, a new online service allowing individuals to transfer money instantly between Nepal and India via mobile phones has officially gone live. The service is currently operational through a select group of commercial banks and financial institutions.

According to the Nepal Clearing House Limited (NCHL), roughly 9 to 10 major commercial banks have already integrated the feature into their systems. Customers can now initiate instant cross-border transactions using either their bank’s standard mobile banking app or the ConnectIPS mobile application.

Seamless Cross-Border Integration

To send money, users simply need to select the newly integrated “Cross-Border Fund Transfer” option within their apps. Transactions can be executed securely using the recipient’s bank account details or a Virtual Payment Address (VPA), such as a registered mobile number.

While the service is currently limited to major banks on both sides of the border, NCHL confirmed that it has been undergoing successful internal testing for the past week.

“The service will be progressively rolled out to all other commercial banks, development banks, and financial institutions,” an NCHL official stated. A formal public announcement detailing the complete fee structure and regulatory guidelines is expected in the coming days.

Nabil Bank First to Launch Dedicated P2P Remittance

Taking the lead in this digital rollout, Nabil Bank has officially launched its “Nepal-India-Nepal Real-Time P2P Remittance Service” through its proprietary mobile banking app, nBank.

The bank’s new feature bridges the gap for citizens on both sides of the border:

• Sent from Nepal: Indian citizens holding accounts with Nabil Bank can now send money instantly to family and friends in India via the app.

• Sent from India: Both Nepalese and Indian nationals residing in India can transfer funds directly into Nabil Bank accounts in Nepal.

Transaction Limits & Caps

To comply with central bank regulations, specific transaction caps have been enforced for the initial rollout phase:

As more banks join the network, this cross-border payment corridor is expected to drastically reduce reliance on traditional, expensive remittance channels.