Agreement between Mahalaxmi Bikas Bank and NCHL

KATHMANDU:Mahalaxmi Bikas Bank and Nepal Clearing House (NCHL) have signed a memorandum of understanding to facilitate international payments between Nepal and India.

Among development banks, the bank claims to be the first to reach an agreement with NCHL for foreign transaction payments. It is said that the bank can provide this service because Nostro accounts are active in India.

Following the agreement, and immediately following the launch of the international transaction cross-border payment service, Indian citizens in Nepal will be able to transfer funds directly to their accounts in India using any UPI handle linked account opened in Mahalaxmi Bikas Bank, subject to the limits set by Nepal Rastra Bank.

Similarly, Nepali citizens in India can use the UPI-enabled app to transfer funds directly to Mahalaxmi Bikas Bank's UPI-linked account in Nepal, subject to the regulatory body's limits.

The introduction of this international payment system is expected to immediately benefit customers, particularly students, pilgrims, tourists, and those traveling to India for medical treatment.

The agreement was signed by Mahalaxmi Bikas Bank's CEO, Dipesh Lamsal, and NCHL's CEO, Nileshman Singh Pradhan.

The bank operates 103 branch locations and serves around 7 lakh customers across the country.

In addition, the Bank's Annual General Meeting approved a resolution to seek strategic partnerships with foreign banks or financial organizations.