NMB Capital Ltd. (NMBCL) has signed an agreement with Nepal Clearing House Ltd. (NCHL) for automating its various payments processes, including disbursements and collections, through NCHL’s payment systems. With this, NMB Capital has also become a part of National Payment Switch (NPS).
National Payment Switch is the system under NCHL, developed for the interoperability and prompt settlement of financial transactions between and among the companies, government and financial entities.
The agreement was signed by Mr. Deepesh Kumar Vaidya, CEO of NMBCL and Mr. Neelesh Man Singh Pradhan, CEO of NCHL.
By directly integrating its systems with the National Payments Interface (NPI) of NCHL, NMB Capital will be among the first few merchant banks to automate its payments. This will allow the company to leverage various digital instruments that are available by the National Payment Switch.
Through the NCHL-IPS and connectIPS systems, it will fully allow automating different disbursement and collection transactions. Such transactions will be carried out directly between NMB Capital’s bank accounts and its customers or beneficiaries at any BFIs.
What is NPI system?
National Payments Interface (NPI) is a streamlined interface for National Payment Switch (NPS), which is now a part of NCHL’s several underlying payment systems. It facilitates for smooth processing of digital payments between the BFIs that are made in the accounts of various companies, BFIs and entities.
It is used by 73 non-bank institutions, including PSPs/PSOs, insurance firms, remittance services, merchant banks, government and semi-government organizations, major corporations, etc. It has over 59 BFIs within the network.
As NMB Capital is a merchant institution in Nepal, providing various investment and portfolio management services, the customers can directly make payments to the portal of NMB by going through the system of NCHL like connectIPS and others.
Similarly, interbank payments made for this capital can be easily settled.
About NCHL
Nepal Clearing House Limited (NCHL) is a company that works as a payment system operator (PSO) for the banks and financial institutions, government, corporates and general banking customers through various products and services.
NCHL has been providing services through more than 6 payment systems:
- Electronic Cheque Clearing (NCHL-ECC) for electronic cheque processing and settlement between the BFIs
- NCHL-IPS system for interbank payments
- connectIPS as a payment processor for banking customers to make payments directly through their linked bank account
- CORPORATEPAY for the corporate clients to make direct bank payments
- National Payments Interface (NPI) that provides access to NCHL-IPS systems and connectIPS as an API
- connectRTGS for processing of high-value and urgent transactions between BFIs
Above all these, National Payment Switch (NPS) is the core switching and routing mechanism that integrates these various digital payment systems under NCHL and ensures the interoperability of such card and non-card based retail payments.
About NMB Capital
Founded as a fully owned subsidiary of NMB Bank Limited, NMB Capital Limited (NMBCL) specializes in merchant and investment banking.
For more than ten years, NMBCL has provided trusteeship services for the issue of bonds, debentures, and other marketable instruments.
It has placed a strong emphasis on innovation in service design and delivery, which empowers digital services for better service and client convenience.
And to extend its services more to its clients and customers, NMBCL has joined hands with NCHL to automate its various payment processes in National Payment Switch.
According to NCHL, this agreement with NMBCL for payment automation is anticipated to substantially enhance its service offering. Indeed, NCHL has been a game changer for making digital payments ranging from general customers to high value transacting BFIs, corporates and the government itself. With the mandate from Nepal Rastra Bank for the establishment and operation of National Payment Switch (NCHL) has already been onboarding various BFIs and merchants in its system to expand its services to the public.
Under the first phase plan of NCHL to implement the National Payment Switch, it is now focusing more on Retail Payment Switch, where it is targeting banking customers such that they can enjoy non-card based transaction between various platforms like connectIPS, CORPORATEPAY and other systems.
Similarly, NCHL is also moving forward with NEPALPAY QR, that is offering QR based transactions with interoperability between mobile banking, connectIPS and digital wallets. Also, it has already partnered with MOCO digital wallet for integrating card based transactions. Through this system, you can directly make digital payments by linking your debit/credit cards. And the API is provided by NCHL for processing those payments.
As per the information provided by NCHL, they are onboarding more BFIs as member companies to provide services to a wide range of users and to contribute in attainment of the goal of #digitaleconomy under Digital Nepal Framework- 2019.
Also read: The Government of Nepal promoting digital payments in a larger scale, also adopting NEPALPAY QR
