Agreement Between Prabhu Bank and Nepal Clearing House Limited Regarding Cross-Border Payments

KATHMANDU: Prabhu Bank and Nepal Clearing House Limited have signed an agreement to facilitate cross-border payments between Nepal and India. The agreement was signed by Rashmi Pant, Chief Business Officer of Prabhu Bank, and Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL.

This agreement will enable Indian citizens residing in Nepal to directly transfer funds from their UPI handle-linked accounts in Prabhu Bank to their accounts in India, subject to limits set by the Nepal Rastra Bank. The bank believes this agreement will simplify cross-border transactions, allowing daily transfers of up to Rs. 15,000 Indian rupees and monthly transfers of up to Rs. 1 lakh Indian rupees within the limits set by the Nepal Rastra Bank.

Similarly, Nepali citizens residing in India can also transfer funds directly to their UPI handle-linked accounts in Prabhu Bank in Nepal using UPI-enabled apps, subject to limits set by Indian regulators. Currently, Nepali citizens in India can transfer funds to Nepal as follows:

Up to Rs. 2 lakhs per transaction from their bank accounts in India.
Up to Rs. 50,000 per transaction from any bank in India, not exceeding 12 transactions per year if they do not have a bank account in India.
The bank is confident that this new international electronic payment service will allow customers to conveniently make cross-border payments within the limits set by Nepali and Indian regulatory bodies, maximizing their benefits.