Collaboration between Nepal Digital Payments Company Ltd. (NDPC) and Nepal Clearing House Ltd. (NCHL):
NCHL’s National Payments Interface (NPI) will be used by NDPC as a single channel for interconnection with various underlying core systems, including connectIPS and NCHL-IPS systems, through which NDPC will be able to reach banks and financial institutions. This will make it easier to initiate transactions and promote their agreements for a variety of business use cases, both in real time and in the future. NDPC, on the other hand, will be able to concentrate on extending digital financial services to rural areas in order to reach both banked and unbanked people.
The agreement between NDPC, a telecom-led entity, and NCHL, a BFI-led entity, is a significant step forward in Nepal’s digital payments ecosystem. It is expected to improve the digital initiatives outlined by the Nepalese government in the Digital Nepal Framework and Nepal Rastra Bank policies. The NDPC wallet service, which will be available for mobile financial services in the near future, is currently being tested. Additionally, once it is operational, the service can be accessed by both online and offline media. The best aspect is that it can also be used with a feature phone. For this, the Nepal Rastra Bank recently granted NDPC a license to operate as a Payment Service Provider through “NamastePay.”
Nepal Digital Payments Company Ltd. (NDPC)
Nepal Doorsanchar Company Ltd. (Nepal Telecom), Nepal’s largest telecom service provider, and Rastriya Banijya Bank Ltd., one of the country’s largest public-sector commercial banks, formed NDPC as a public limited company. This is expected to have a combination of scope, penetration, and banking and financial services expertise. This one-of-a-kind partnership aims to operate mobile financial services in order to provide digital financial services to the general public and contribute to the country’s digital society mission.
NCHL has served as the Payment System Operator (PSO) for the NCHL-ECC, NCHL-IPS, connectIPS e-Payment, connectRTGS, National Payments Interface (NPI), and CORPORATEPAY national payment systems, with over 63 BFIs as direct members and over 58 non-bank institutions as indirect/ technical members. NCHL has been supporting the digital payments ecosystem by offering payment system infrastructure and facilitating BFIs, PSPs, PSOs, government/semi-government agencies, insurance firms, remittances, merchant banks, and so on.