Mahalaxmi Bikas Bank & NCHL sign pact to ease Nepal-India transactions

KATHMANDU: Mahalaxmi Bikas Bank and Nepal Clearing House Ltd. (NCHL) have signed an agreement to facilitate international transactions between Nepal and India.

This marks the first collaboration between a development bank like Mahalaxmi and NCHL for facilitating international transactions.

Under the agreement, customers with Nostro account in Indian banks can now avail themselves of this facility. Following the agreement, the Cross-Border Payment Service will commence initially in Nepal.

Indian nationals residing in Nepal will be able to adhere to the regulations set by the Nepal Rastra Bank and directly transfer funds to their accounts in India through any UPI-enabled handle linked to Mahalaxmi Development Bank.

Similarly, Nepali citizens residing in India can also utilize the UPI-enabled app to transfer funds directly to their Mahalaxmi Bikas Bank accounts in Nepal, staying within the prescribed limits set by regulatory authorities.

This initiative is expected to benefit customers such as students, pilgrims, tourists, and those seeking medical treatment in India by facilitating direct transactions once international payments commence.

The agreement was signed by Dibesh Lamsal, Chief Executive Officer of Mahalaxmi Development Bank, and Neelesh Man Singh, Chief Executive Officer of NCHL.