Source::The Kathmandu Post
To address the criticism of Nepal's decision of banning the usage of high denomination notes of Indian currency, The Gateway Payment Service Private Limited, the National Payment Corporation of India (NPCI) and International Payments Limited (NIPL) are collaborating to make a unified payment interface (UPI) in Nepal.
With this UPT coming to Nepal this May, Indians coming to travel are not required to carry paper money and can simply make payments by scanning QR codes for transactions. This system will enable payment transactions for larger digital goods and boost person-to-person (P2P) and person-to-merchant (P2M) in Nepal.
With UPI being involved in 39 billion financial transactions which were equivalent to 31 per cent of India's GDP worth about $940 billion. The application of UPI will help in cutting down any red tape and administration burdens when using foreign currencies in Nepal. Nepal banks also benefit by getting direct access to Indian currency.
This UPI will also help in the easing of transactions in Nepal as online banking and solutions take off in Nepal with digital payments from mid-December to mid-January amounting to Rs 5.14 trillion with 54.56 digital transactions, which has been the highest single-month digital transactions on record.
While this has been quite a boon and convenient for Indians, the Nepal central back clarified that this system will not be reciprocal meaning that Nepalis will not be allowed to make payments through Bharat-QR while travelling to India. The Gateway Payment Service Private Limited has sought permission and are waiting for Nepal Rastra Bank's confirmation to allow digital transactions for Nepalis while travelling to India
