NCHL reduces transaction fees for fund transfers up to Rs. 500

KATHMANDU: To promote digital payments and to make low-value fund transfers easy and convenient for the end users, NCHL has downward revised the transaction fee for fund transfers up to Rs 500 processed through Retail Payment Switch (RPS).

Fund transfers initiated from banks & financial institutions’ mobile banking, connectIPS web & mobile app, and cash in/out in mobile wallets of PSPs will be completely waived for transaction amounts up to Rs. 500.

This has been implemented in connectIPS with effect from the 1st of April, 2025, and will be reflected gradually in the mobile banking and wallets after the necessary setups are completed by the respective stakeholders.

For other members and use cases in RPS, the transaction fee will remain as Rs 2, Rs 4, and Rs 8 for transaction amounts up to 500, 5,000, and above 5,000.

VAT is applicable in such transactions after the change in VAT status for NCHL’s clearing services.

NCHL has followed a policy of downward revision of transaction fees as the volume of transactions increases. It has processed more than 75.6 million transactions equivalent to a settlement value of NRs 5,697 billion during the FY 80/81, which has already reached over 68.3 million transactions equivalent to a settlement value of NRs 4,553 billion during the first eight months of the current FY 81/82.

There are over 52 BFI’s mobile banking, which are enabled with such RPS/connectIPS fund transfer. Similarly, customers of more than 13 PSPs can use their wallets for load funds or initiate cash-out to/from their bank account.

RPS, the retail payment switch, as part of NPS, provides access to the member BFIs, PSPs/PSOs, and other entities through open APIs for real-time transaction services.

The transaction limit in RPS for different bank transactions is up to NRs. 20 lakhs per transaction and up to NRs. 1 Cr per transaction for the same bank; however, it may vary based on the channel and the use cases.