New Delhi: The Reserve Bank of India and Nepal Rastra Bank on Thursday signed and exchanged Terms of Reference for integration of fast payment systems of India and Nepal, viz., the Unified Payments Interface (UPI) of India and National Payments Interface (NPI) of Nepal, respectively.

The integration is aimed at facilitating cross-border remittances between India and Nepal by enabling users of the two systems to make instant, low-cost fund transfers, the RBI said in a press release.

The collaboration between India and Nepal in linking their fast payment systems through the UPI-NPI linkage will further deepen financial connectivity and reinforce the enduring historical, cultural, and economic ties between the two countries.

Based on the Terms of Reference exchanged between RBI and NRB, the necessary systems will be put in place for interlinking of UPI and NPI. The formal launch of the linkage i.e., commencement of operations will be done at a later date, the RBI also said.

On February 12, the Unified Payments Interface (UPI) was launched in Sri Lanka and Mauritius adding to the growing list of countries where the payments system is either acceptable or linked to their own fast-payments network.

Taking India's digital boom beyond the four corners of the country in a bid to revolutionise cross-border financial transactions, Prime Minister Narendra Modi, along with his Mauritian counterpart Pravind Kumar Jugnauth and Sri Lankan President Ranil Wickremesinghe, participated in the virtual launch of the RuPay and Unified Payments Interface (UPI) linkage between Mauritius and India on Monday.

"Given India's robust cultural and people-to-people linkages with Sri Lanka and Mauritius, the launch will benefit a wide cross-section of people through a faster and seamless digital transaction experience and enhance digital connectivity between the countries," the Government of India said in a statement on February 11.

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