Monday, 3 October, 2022

National Payment Switch launched


By A Staff Reporter
Kathmandu, Nov.20: The implementation of National Payment Switch (NPS) has started in Nepal.
National Payment Switch/gateway is a system to integrate multiple banks and digital payment vendors and other digital transaction stakeholders into a single system.
The Nepal Rastra Bank (NRB) recently handed over the responsibility of operating the NPS to the Nepal Clearing House Limited (NCHL).

An agreement has been reached between the NCHL and 29 banks and financial institutions (BFIs) for the launch of the first phase of the NPS being implemented by the NCHL.
Representatives of the NCHL and related BFIs exchanged the agreement in presence of NRB Governor Maha Prasad Adhikari on Thursday.
As mentioned in the budget and monetary policy of the government, preliminary approval was given to the NCHL for the establishment of the NPS last fiscal year while the final approval for the implementation of the first phase was received recently.

In all, 29 BFIs have joined the NPS in its first phase of implementation.
A total of 18 commercial banks, 5 development banks and 6 finance companies have so far signed agreements for the implementation of the NPS, according to the NRB.
Under this, Nepal-Pay QR and Internet Network QR as per Nepal-QR standard, direct debit request-to-pay and e-mandate tools, wallet-wallet interconnection, interconnection through biller gateway for various payments and payment instruments, including PSO settlement, are available.

BFIs and non-banking institutions will be able to provide additional services to their customers through various real time, non-real time and open APIs as the primary infrastructure of the switch retail payment.
Similarly, the NCHL has informed that in the second phase, a necessary process has been started for the implementation of National Card Switch and Nepal Payment Card for card and card- related payments.
With the implementation of the NPS, the NCHL is expected to coordinate with the government, regulators and various stakeholders to make the use of payment systems as well as instruments more convenient, accessible and secure.

Speaking on the occasion, Governor Adhikari said that the implementation of the NPS has been a significant achievement in the development of a secure, efficient and easy payment system.
He said, "Implementation of Payment Switch is an important achievement towards making the business safe and healthy by establishing interconnection between BFIs and other institutions involved in payment transactions."