Kathmandu, June 29 (FN Representative) Three months after Indians were allowed to make payments in Nepal using their mobile phones, Nepal Rastra Bank (NRB) announced that Nepali citizens can now utilise a Quick Response (QR) code payment system in India, according to media reports. In a circular released on Thursday, Nepal Rastra Bank permitted merchant payments in India and Bhutan using QR codes as well as other payment methods such as e-banking, interbank payments, and mobile banking, The Kathmandu Post reported. Nepal Rastra Bank has set a daily transaction restriction for merchant payments of Rs 15,000 or Rs 100,000 per month. This refers to payments made by Nepali citizens to Indian merchants, specifically for goods and services. Bhutan’s central bank has issued a circular allowing for such payments. Following this regulation amendment, Nepalese payment system operators want to launch these services in India soon. Moreover, the Nepal Rastra Bank has ordered that Nepali enterprises involved in digital cross-border payment systems seek prior approval from the central bank before entering into agreements or signing memoranda of understanding with overseas partners. This regulatory framework is intended to regulate and facilitate secure cross-border transactions while guaranteeing compliance with national financial legislation. “We were initially allowed to receive payments from Indian citizens using QR codes in Nepal. Now, with the new provision, banking and financial institutions associated with Fonepay can enable payments using QR codes through their mobile banking apps in India,” The Kathmandu Post quoted Paras Kunwar, Chief Operating Officer (COO) of Fonepay as saying.
“We are on track to soon offer this service for Nepalis in India. Apart from some minor documentation, we are technically prepared,” Kunwar added. Starting March 1, Indians were able to make payments in Nepal using their mobile phones, marking a big step forward in cross-border digital payments between Nepal and India. This change is beneficial to students and individuals travelling to India for medical treatment. Fonepay Payment Service in Nepal has teamed with India’s NPCI International Payments to offer a cross-border payment service based on QR codes. The collaboration intends to make transactions between the two countries more convenient and secure. According to officials, Nepal’s central bank has introduced a retail payment switch to facilitate person-to-person transactions within the country. Nepal Clearing House, a public limited company, is authorised to operate through this retail payment switch. Due to difficulties in establishing the National Payment Switch, the central bank has set up a retail switch exclusively for inter-country payments that uses a QR code method. Laxmi Prasad Prasai, director of Nepal Rastra Bank’s payment department, acknowledged that the national payment switch may take longer to be fully operational. He emphasised that once completed, the national payment switch will integrate and streamline the routing and settlement of retail transactions, ensuring interoperability across various payment methods within Nepal. The new guidelines now allow Nepali traders to take payments for the sale of products and services via QR codes and other digital payment methods that use Indian payment instruments, the report said.