Kathmandu – Nepal Clearing House Limited (NCHL) has announced a fee waiver on digital fund transfers up to NPR 500 through its Retail Payment Switch (RPS), effective from Chaitra 19. This initiative aims to encourage small-scale digital transactions and enhance the adoption of electronic payments across Nepal.

According to NCHL, the waiver applies to fund transfers made via ConnectIPS web and mobile applications, mobile banking fund transfers using ConnectIPS, and cash-in/out transactions between digital wallets and bank accounts through ConnectIPS.

Other transactions processed through RPS will continue to be charged NPR 2 or NPR 8, depending on the amount, with applicable VAT.

NCHL has been playing a pivotal role in strengthening Nepal’s digital payment infrastructure. In the previous fiscal year, RPS processed transactions worth NPR 5,697 billion across 756 million transactions, while in the first eight months of the current fiscal year, it has already settled NPR 4,553 billion over 683 million transactions.

The Retail Payment Switch (RPS) currently facilitates real-time digital transactions for banks, financial institutions, and payment service providers (PSPs/PSOs) through an open API framework. At present, 52 banks and financial institutions support fund transfers through ConnectIPS, and over 13 digital wallets offer direct bank-to-wallet cash-in and cash-out services.

As per NCHL, the system allows transactions of up to NPR 20 lakh per transfer, while transactions within the same bank can be processed up to NPR 1 crore.

This initiative aligns with Nepal’s broader digital payment transformation strategy, as NCHL continues to enhance accessibility, reduce transaction costs, and facilitate seamless cashless payments.