Making Online Payments in light of the current Covid pandemic restriction? The transaction cap for Nepal Clearing House Limited (NCHL) payment systems has been updated (connectIPS, NCHL-IPS, Corporate Pay),
The per transaction limit for daily transactions through NCHL-ECC has been set at Rs 20 crores, according to a notice published by NCHL.
Similarly, in NCHL-ECC, high-value transactions can range from Rs 20 crores to Rs 30 crores.
NCHL-ECC is a cost-effective image-based MICR (Magnetic Ink Character Recognition) cheque processing and settlement solution that converts an original paper cheque into an image for electronic processing of financial transactions between participating member Banks/FIs. NCHL developed this system to replace paper-based cheque clearing with electronic processing.
NCHL-ECC currently facilitates the clearing of checks in four currencies: NPR, USD, GBP, and EUR.
The transaction cap for NCHL-IPS has also been updated by NCHL. Government transfers, treasury-related transactions, and other transactions have per transaction limits of Rs 200 crores, Rs 50 crores, and up to Rs 20 crores, respectively.
NCHL-IPS is something you should be aware of.
NCHL-IPS is a payment mechanism designed to facilitate interbank transactions. Account-to-account transfers (Direct Credit) and collection (Direct Debit) transactions are supported. It’s a safe and efficient mechanism for moving money from one account to another at any of the participating member BFIs.
The regular transaction cap for both smartphone and web applications has been updated by connectIPS. It is still in effect, and users can move up to Rs 1 lakh per transaction and Rs 2 lakh per day using the connectIPS mobile app. Furthermore, the daily and per transaction limits for transferring funds from the web version are Rs 10 lakhs and Rs 20 lakhs, respectively.
Furthermore, up to Rs 1 crore can be transferred for broker payments.
Member companies can pass up to Rs 10 lakhs using connectIPS and up to Rs 20 crores using NCHL-IPS for corporatePay.
The cap for On-Us transactions has been set at Rs 1 crores. The term “on-us” refers to a transaction in which the issuing and receiving banks are the same. If that is not the case, it is referred to as an Off-Us transaction.
Let’s take a look at what corporatePay is all about.
corporatePay is a payment portal that allows corporate and business clients of member banks and financial institutions to make digital payments from each of their accounts with the member banks.
It’s a new device that NCHL has introduced to its product line to make corporate payments easier. The maximum number of transactions per day through corporatePay is determined by each bank’s policy.
If a transaction is carried out under connectIPS, the upper limit for a single transaction for NCHL-NPI is set at Rs 10 lakhs. The cap for On-Us transactions has also been set at Rs 1 crore. In addition, the cap on NPI payments made through NCHL-IPS has been set at Rs 20 crores.
The National Payments Interface (NPI) is a set of Application Programming Interfaces (APIs) for multiple payment systems hosted by NCHL or other organizations, all of which are based on an Open API framework. It gives users access to the NCHL-IPS system and connectIPS e-payment system as underlying payment systems, with overlaying services installed on top. It mainly supports push transactions and integrates with connectIPS for real-time instant payments and NCHL-IPS for deferred credit payments.
The connectRTGS is the next thing to get a makeover. Since the RTGS framework was designed for large quantities of digital payments, the per transaction cap is set to a minimum of Rs 2 lakhs. The acronym RTGS stands for Real-Time Gross Settlement, which means that this system facilitates the processing of high-value and urgent transactions between participating BFIs as well as the net settlement of systemically relevant payment systems. It allows for immediate fund realization and reduces the chance of other payment systems’ settlement. Nepal Rastra Bank implements and hosts the central RTGS scheme (NRB).
By launching its six common payment tools, such as connectIPS, connectRTGS, NPI, NCHL-ECC, corporatePAY, and NCHL-IPS, NCHL has made the transition from paper-based transactions to digital transactions. These systems are effective at processing digital payments by connecting the bank accounts of users, both individuals and businesses, as well as the government.
NCHL has undeniably paved the way towards achieving the aim of the digital economy under the leadership and guidance of Nepal Rastra Bank. NCHL, which has more than 60 member banks and financial institutions, has helped to promote the use of digital payments, with transactions through connectIPS alone exceeding Rs 825 billion in mid-April 2021, a whopping 302 percent improvement over the previous year. Other payment systems, such as corporatePAY, are seeing an increase in transactions as well.
This transaction cap is supposed to be a lifesaver for several people, corporations, and BFIs who need to conduct digital payments and settlements during the lockdown.