Nepal Clearing House Ltd. Has reached an agreement with OnePoint Financial Services seeking to facilitate cross-border digital payments. The cooperation will prove fruitful for Nepal-India cross-border payment plans which are about to start in 2024.
The agreement papers (MoU) were signed by Shripratap Shrestha and Nileshman Singh Pradhan, Chief Executive Officers (CEOs) of OnePoint and NCHL respectively. The agreement formalizes their agreement to make necessary arrangements for the inter-country transaction system operated by NCHL. NCHL is a prominent payment system creator in Nepal while OnePoint provides an API Management System- APIMS for banks and financial institutions (BF/Is).
Also read: Digital Transaction Limit of Mobile Banking, Internet Banking, and Wallets in Nepal [2024]
OnePoint, NCHL agreement for Nepal-India digital payment
OnePoint will now provide a virtual payment address- VPA module to Nepal’s banks and financial institutions which is designed to adhere to India’s National Payments Corporation of India (NCPI). This infrastructure will help NCHL in processing cross-border digital payments by users in Nepal and India. Essentially, NCHL will work as a payment switch for Nepali banks and financial institutions. Fonepay and mobile banking apps will be used for online payment for users in both of these countries.
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OnePoint Financial Services has been providing cutting-edge fintech solutions to Nepali institutions with the view to define the financial landscape in the country. So far, it’s providing innovative digital systems for 18 banking institutes including 13 commercial banks.
The NCHL-OnePoint agreement is the latest and crucial development in the plan for the Nepal-India cross-border payment initiative. Recently, a ToR was signed between the Nepal Rastra Bank (NRB) and the Reserve Bank of India (RBI), the central banks of both respective countries. Let’s hope the much-awaited and game-changing digital payment plan substantiates in the near future.