Making Payments Online? Here’s the Transaction Limit on NCHL connectIPS


Making Payments Online considering this ongoing restriction due to the Covid pandemic? Here’s the transaction limit for the payment systems (connectIPS, NCHL-IPS, Corporate Pay) of Nepal Clearing House Limited (NCHL).

According to the notice published by NCHL, the per transaction limit for regular transactions via NCHL-ECC is set to be Rs 20 Crores. Similarly, the high value transactions in NCHL-ECC can amount from Rs 20 crores to Rs 30 crores. 

Making Payments Online? Here's the Transaction Limit on NCHL connectIPS 1


NCHL-ECC is an image-based, cost-effective, MICR (Magnetic Ink Character Recognition) cheque processing & settlement solution where an original paper cheque is converted into an image for electronic processing of the financial transactions between participating member Banks/FIs. This is a system developed by NCHL to replace paper-based cheque clearing methods with electronic processing.

At present, NCHL-ECC supports cheque clearing of four currencies NPR, USD, GBP, and EUR.

Know about NCHL-IPS

NCHL-IPS is a payment system developed for supporting interbank payments. It supports account to account payments (Direct Credit) and collection (Direct Debit) related transactions. It is a safe and efficient system for the transfer of funds from one account to another account held at any of the participating member BFIs.  

The per transaction limit for government payments, treasury related transactions remaining others through NCHL-IPS are set to Rs 200 crores, Rs 50 crores, and up to Rs 20 crores respectively. 

About connectIPS

Regarding connectIPS, one can transfer up to Rs 1 lakhs per transaction and Rs 2 lakh per day from the mobile app of connectIPS. In addition to that, the per transaction and per day limit for transferring funds from the web version of it are Rs 10 lakhs and Rs 20 lakhs respectively. Moreover, one can transfer up to Rs 1 crore per day for broker payments. 

Making Payments Online? Here's the Transaction Limit on NCHL connectIPS 2

Let’s Know about corporatePay

For corporatePay, the member corporations can transfer up to Rs 10 lakhs using connectIPS and up to Rs 20 crores through NCHL-IPS. 

Regarding On-Us transactions, the limit is set to be up to Rs 1 crores. On-Us transaction is such a transaction in which the cheque issuing bank and acquiring bank is the same. If that’s different, it is called Off-Us transaction. 

corporatePay is a system that acts as a payment platform for the corporate and business customers of the member banks and financial institutions to initiate digital payments from any of the accounts maintained at the member banks. 

It is a newly added system by NCHL in its product line to facilitate corporate payments. The upper limit for transaction per day through corporatePay depends upon the individual bank’s policy.

National Payments Interface (NPI)

For NCHL-NPI, the upper limit for a single transaction is set to be Rs 10 lakhs if it is carried out under connectIPS. Similarly, the limit for On-Us transactions for it is set to Rs 1 Crore. Furthermore, the limit on NPI payments carried out through NCHL-IPS is set to be Rs 20 crores. 

National Payments Interface (NPI) is the consolidated Application Programming Interfaces (APIs) of multiple payment systems hosted by NCHL or any other institutions built in an Open API platform concept. It provides access to NCHL-IPS system and connectIPS e-payment as underlying payment systems with the overlaying services built on top of the platform.  It primarily supports push transactions with seamless integration to connectIPS for real-time instant payments and to NCHL-IPS for deferred credit payments.

What about connectRTGS?

The next payment system is connectRTGS. The per transaction limit is set to a minimum of Rs 2 lakhs since the RTGS system is developed for high amounts of digital payments. RTGS stands for Real-Time Gross Settlement, which means this system supports the processing of high-value and urgent transactions between the participating BFIs and for settlement of systemically important payment systems on a net settlement basis. It provides immediate realization of funds and minimizes the settlement risk of the other payment systems. The central RTGS system is implemented and hosted by Nepal Rastra Bank (NRB). 

Also Read: Debit Card VS Credit Card: How to Make the Most Out of Them?

The Benefits 

NCHL has taken a leap from paper based transactions to digital transactions by introducing its six popular payment tools like connectIPS, connectRTGS, NPI, NCHL-ECC, corporatePAY and NCHL-IPS. These systems are indeed successful in processing the digital payment by interlinking the bank accounts of the user individuals and companies along with the government. 

Under the leadership and guidance of Nepal Rastra Bank, NCHL has undoubtedly paved the way towards attaining the goal of the digital economy. Having more than 60 member banks and financial institutions, NCHL has contributed to fostering the practice of digital payments as the transactions through connectIPS alone have crossed the amount of Rs 825 billion in the mid of April 2021, which is a whopping 302% increase from that of the previous year. Other payment systems like corporatePAY are also getting a rise in transactions.  This is making clear that NCHL is heading towards contributing in fostering digital transactions for attaining higher digital conversion as of the vision of Digital Nepal Framework.


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