29 BFIs to Join National Payment Switch in the 1st phase of its Roll-Out

29 banks and financial Institutions have signed an agreement todayto join in the rollout of the first phase of National Payment Switch (NPS) that Nepal Clearing House Ltd.is implementing. The agreement was exchanged between the representatives of the BFIs and NCHL in a formal event held today, which was graced by the presence of the Honorable Governor Mr. Maha Prasad Adhikari.

Deputy Governors Dr. Neelam Dhungana Timsina and Mr. Bam Bahadur Mishra, Executive Directors & senior officials of Nepal Rastra Bank, Presidents of the three associations of BFIs, CEOs of the majority of the BFIs, heads of various payment service providers and payment system operators were also present in the event. 

Implementation of National Payment Switch is one of the national agenda of the Government of Nepal included in the budget plan and Nepal Rastra Bank’s Monetary Policy, corresponding to which NRB had granted an initial approval to NCHL in the last fiscal year and the final approval for rollout of the first phase of in Kartik 2078. 

Total of 18 commercial banks, 5 development banks and 6 finance companies have entered into the NPS Phase 1 rollout agreement with NCHL. It is also working with other BFIs, PSPs and PSO for successful rollout of the retail payment switch, as the first phase of the NPS project. It will ensure non-card based transactions interoperability between payment infrastructures, services and instruments including introduction of various digital instruments and use cases. While the complete infrastructure and procedures, required for the first phase of NPS, has been completed, NCHL is now collaborating with the BFIs, PSPs, and PSOs for its rollout and business operations. 

The first phase of NPS includes retail payment switch to remain as an implementing infrastructure for NepalQR Standards including NEPALPAY QR scheme and inter-network QR; direct debit Request-To-Pay and e-mandate instruments; wallet to wallet interoperability; biller gateway for service interoperability; and PSO settlement. Itwill remain as the primary digital payments infrastructure having real-time and non-real-time switches and open APIs, that can be used by the BFIs and non-BFIs to establish multiple digital payment related use cases.

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The second phase of the NPS project is work in-progress that is intended to establish national card switch and Nepal Payment Card to ensure interoperability of domestic card transactions and for introduction of Nepal’s own domestic card scheme.

With the establishment of National Payment Switch, NCHL expects to support and work together with the Government of Nepal, regulator and all the stakeholders to increase and improve digital payments ecosystem in Nepal. 

List of Banks & Financial Institutions joining National Payment Switch