The process for a merger of Nepal Electronic Payments System (NEPS) into Nepal Clearing House Limited (NCHL) has formally begun. On NCHL’s 15th anniversary on Sunday, December 24, 2023 (8th Poush, 2080), an agreement for the merger and acquisition was reached between these two entities.
A memorandum of understanding (MoU) was exchanged between Mahesh Sharma Dhakal and Sanjeev Kumar Shrestha who both served as coordinators in their respective Merger Accomplishment Committees.
The same event also had the presence of NRB’s governor Maha Prasad Adhikari, Deputy Governor Dr. Neelam Dhungana Timsina, and various representatives from banks and financial institutions in Nepal.
Both NCHL and NEPS are licensed by Nepal Rastra Bank (NRB) and are prominent in their fields. NCHL works to establish national-level payment systems for clearing, payment, and settlements using advanced and innovative technologies. NEPS, on the other hand, aims at providing solutions for card issuance, and other digital services for banks and financial institutions. Both are leading firms with high relevancy in their respective works.
Also read: Nepal Rastra Bank Calls for Digital Wallets Merger
NEPS and NCHL Merger advantages
The merger of NEPS into NCHL will have various advantages for digital financial goals. This will facilitate work on creating more solutions and services that are technology-friendly and more efficient. Digital banking, cashless payment, and other digital services will expectedly further improvement.
It’s also expected that the merger will make their services improved, competitive, and productive. The companies maintained that the merger complements the merger and acquisition policy taken by Nepal Rastra Bank for their better.
NEPS was established on 18 Falgun, 2069, and boasts a network of over 1,600 ATMs of 11 banks and financial institutions, more than 9,000 POS services, etc. NCHL has over 53 banks and financial institutions in its service network.