Nepal Clearing House waives fees on fund transfers up to Rs 500
KATHMANDU: In a move set to ease the burden on small-scale digital transactions, the Nepal Clearing House Limited (NCHL) has announced that no fees will be charged on fund transfers up to NPR 500 through mobile banking, wallets, and Connect IPS. The decision, effective immediately, was detailed in a notice published on Wednesday, reflecting a revision in the fee structure of the Retail Payment Switch (RPS) system.
Under the new arrangement, users can transfer up to NPR 500 without incurring any charges when using mobile banking apps, the Connect IPS platform (via mobile or website), or when loading or withdrawing funds from digital wallets. For transactions exceeding this threshold, a modest fee structure has been introduced: NPR 4 for transfers between NPR 500 and NPR 5,000, and NPR 8 for amounts above NPR 5,000. Merchant and creditor payments follow a similar tiered system, with fees of NPR 2, NPR 4, and NPR 8 for amounts up to NPR 500, between NPR 500 and NPR 5,000, and above NPR 5,000, respectively.
NCHL emphasized that customers will face no charges for transactions where service providers or merchants cover the fees, ensuring cost-free transfers in such cases. This revision aligns with NCHL’s ongoing policy of adjusting fees based on transaction volumes, a strategy aimed at promoting digital payments while keeping them affordable.
The impact of NCHL’s systems is evident in its transaction data. In the last fiscal year, the RPS facilitated 75.6 million payment transactions totaling NPR 5,697 billion. This fiscal year, in just eight months, it has already processed 68.3 million transactions worth NPR 4,553 billion, underscoring the growing reliance on digital platforms.
Currently, 52 banks and financial institutions offer fund transfer services through RPS and Connect IPS via their mobile banking apps, while over 13 digital wallets provide cash-in and cash-out options linked to bank accounts.
This fee waiver for small transactions is expected to encourage wider adoption of digital payments, particularly among users handling everyday micro-transactions, further solidifying Nepal’s push toward a cashless economy.
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