NRB authorize NCHL to build National Payment Gateway-alternative to VISA card

Nepal Rastra Bank (NRB) have given ahead notice to Nepal Clearing House Limited (NCHL) to build the National Payment Gateway . The work ahead notice was given by the board members of the Nepal Rastra Bank.

According to governor Mr Chintamani Sapkota “The work to setup the National Payment Gateway was given to Nepal Clearing House Limited. And NHCL is working on this”.

After the development of the national payment system in Nepal, there will be no dependency to foreign payment system like Visa and Master Card for the transaction. Thus, millions of money would be save here in Nepal. Till now, for every transactions done, millions of Nepalese money have been sent on behalf of using their payment system.

With campaign digital Nepal, there is rampant increase in usage of electronic system for the payment. Debit card, credit card, POS, ATM, prepaid card are the most used electronic system. For the transaction done in such system, there requires a switch which authorize the transaction and in use of this switch, Nepalese have to pay charge.

What is NCHL?

Nepal Clearing House Ltd. (NCHL) is a public limited company established on 23rd December 2008 (8th Poush, 2065) under the leadership and guidance of Nepal Rastra Bank (The Central Bank of Nepal). It has the equity participation from Nepal Rastra Bank, commercial banks, development banks, finance companies and Smart Choice Technologies (SCT), a private card switch operator.

NCHL has the strategic objectives to establish multiple payments, clearing and settlement systems in Nepal with long term objective to establish a national payments gateway to facilitate electronic payments and financial transactions within the country. Electronic Cheque Clearing (NCHL-ECC) ,  Interbank Payment System (NCHL-IPS) and connect IPS e-Payment System are the national payment systems that are currently in operation.

After the development of the national payment gateway in nepal, the dependency on the foreign switches will be removed. The banks and other service provider will use the switch of the NHCL to settle the transaction. Therefore the amount send to foreign switches will also be saved.

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