In a historic move for Nepal’s financial sector, Nepal Clearing House Ltd. (NCHL) officially launched the NPS-National Card Switch (NPS-NCS) and the NEPALPAY Card as the country’s first domestic card scheme. The event, presided over by Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari, marks a critical step toward reducing reliance on international card networks and boosting digital sovereignty.
Key Features of NEPALPAY & NPS-NCS
A Unified, Secure, and Localized Payment Ecosystem
Domestic Card Scheme:
- NEPALPAY Card (EMV chip-based) accepted at ATMs, POS terminals, and soon in e-commerce/virtual payments.
- Reduces dependency on Visa/Mastercard/RuPay, ensuring data localization and lower transaction costs.
Advanced NPS Infrastructure:
- National Card Switch: Seamless interbank transactions.
- Centralized Settlement & Dispute Management: Faster resolution.
- AI/ML Fraud Detection: Enhanced security against cyber threats.
- Cross-Border Interface (NPIx): Future-proofing for international interoperability.
Bank Participation:
- Himalayan Bank, Machhapuchhre Bank, and Siddhartha Bank conducted live transactions.
- Multiple banks signed agreements for NEPALPAY issuance & interoperability.
Why This Matters for Nepal?
Financial Inclusion & Digital Sovereignty
- Cost Efficiency: Lower fees compared to foreign card networks.
- Data Localization: Transactions processed within Nepal, enhancing security.
- Innovation Boost: Paves the way for Nepal’s own UPI-like systems.
- Scale: NCHL already processes NRs 15.5 trillion annually across 54+ banks/financial institutions.
What’s Next?
- Expanded Acceptance: E-commerce, QR payments, and government transactions.
- Cross-Border Linkages: Potential integration with India’s UPI and other regional systems.
- Financial Inclusion: Wider access for rural and unbanked populations.
Final Thoughts
With NEPALPAY, Nepal joins the league of nations with indigenous payment systems (like India’s RuPay, China’s UnionPay). Will this accelerate Nepal’s cashless future?