Nepal Life Insurance has joined the network of National Payment Switch (NPS). The collaboration will see the insurance company integrate its various transactions and services into the “Switch.”
Recently, the company signed agreement papers paving way for digital transactions withe the interoperable payment negotiator.
Pravin Raman Parajuli, Chief Executive Officer of Nepal Life Insurance Company, and Nileshman Singh Pradhan, CEO of NCHL signed the agreement papers.
The partnership integrates NLIC’s transaction system into NCHL’s National Payment Interface (NPI) and allows services available from the Switch.
What transactions do NLIC and National Payment Switch bring?
The collaboration between NLIC and National Payment Switch allows the latter to conduct its insurance payments, policy claim transactions, agent commission, salary, etc. At the same time, the Switch will also facilitate making NLIC accounts’ funds more systematic.
The National Payment Switch connects banks and digital payment service providers to allow them to transfer money. Primarily, the Switch provides both real-time and non-real-time services which allow banks and financial institutions to exchange their financial information.
Being a payment vendors integrator, Switch also helps settle transactions centrally and keep records of transactions made through BFIs, and PSPs.
Digital payment has seen a huge upsurge in Nepal. The Ashoj report of FY 079/80 shows mobile banking transactions rising by 85% attesting to the exponential trend of digital payment in Nepal.
National Payment Switch is another product that seeks to promote the digital economy of Nepal.