UPI
Indo-Nepal UPI Payment Hub
Cross-Border Digital Payments • Indian UPI in Nepal • Real-Time Settlement • NPCI International & Nepal Rastra Bank Partnership
How Indo-Nepal UPI Works
The Indo-Nepal UPI corridor enables Indian UPI users (Google Pay, PhonePe, Paytm, BHIM) to make instant payments in Nepal by scanning Nepali QR codes.
- STEP 1 Indian tourist scans Nepali merchant’s QR code
- STEP 2 Transaction routed through NPCI International
- STEP 3 Real-time currency conversion INR to NPR
- STEP 4 Instant settlement to merchant’s bank account
- STEP 5 Instant payment confirmation
Note: Only Indian mobile numbers with active UPI can make payments.
Participating Nepali Banks
As of March 2026, these Nepali banks support UPI payments:
| Bank Name | UPI Integration | Activation Date |
|---|---|---|
| Nabil Bank | FULLY ACTIVE | Dec 2024 |
| Global IME Bank | FULLY ACTIVE | Jan 2025 |
| Prabhu Bank | FULLY ACTIVE | Feb 2025 |
| NIC Asia Bank | FULLY ACTIVE | Mar 2025 |
Upcoming: Everest Bank, Nepal Bank, Rastriya Banijya Bank.
Transaction Limits & Restrictions
UPI transactions in Nepal follow strict limits:
Fees, Charges & Exchange Rates
| Fee Type | Charge | Who Pays |
|---|---|---|
| Merchant Fee | 0.75% of amount | Nepali Merchant |
| Currency Conversion | 0.5% spread | Indian Payer |
| Cross-border Fee | 1.5% of amount | Indian Payer |
Exchange Rate: Real-time RBI reference rate + 0.5% spread.
For Nepali Merchants: How to Accept UPI
To accept payments from Indian tourists via UPI:
- STEP 1 Open business account with participating bank
- STEP 2 Apply for Fonepay or Connect IPS QR code
- STEP 3 Complete KYC with business documents
- STEP 4 Receive QR code sticker from bank
- STEP 5 Display QR code at payment counter
Benefits: Lower fees than cards, instant settlement, attracts Indian tourists.
For Indian Tourists: How to Pay with UPI
- PRE-TRAVEL Update UPI app and enable international transactions
- ARRIVAL Activate international roaming
- PAYMENT Open UPI app at merchant
- SCAN Scan merchant’s QR code
- VERIFY Enter amount in NPR
- CONFIRM Review charges and enter UPI PIN
Supported QR Code Networks
Indian UPI apps can scan these Nepali QR codes:
| QR Network | Operator | Coverage |
|---|---|---|
| Fonepay QR | Fonepay Payment | Nationwide |
| Connect IPS QR | NCHL | Major cities |
| Bank-specific QR | Individual banks | Bank branches |
KYC Requirements & Security
| Transaction Value | Indian User KYC | Nepali Merchant KYC |
|---|---|---|
| Below NPR 2,000 | Basic UPI KYC | Merchant registration |
| NPR 2,000 – 50,000 | Full KYC verified | Full business KYC |
| Above NPR 50,000 | Enhanced KYC | Enhanced business KYC |
Regulatory Framework
- GOVERNING BODIES: Nepal Rastra Bank + Reserve Bank of India
- OPERATORS: NPCI International + Fonepay/Connect IPS
- AGREEMENT: MOU signed November 2023
- LAUNCH: Full launch December 2024
- FUTURE: Reciprocal system planned for 2027
Customer Support & Issue Resolution
| Issue Type | Contact | Response Time |
|---|---|---|
| Payment Failed | Your Indian Bank | 24-48 hours |
| QR Not Scanning | Merchant’s Bank | Immediate |
| Wrong Amount | Merchant + Bank | 3-7 days |
Emergency Contacts: NPCI International: +91-22-6130-9900