On the 19th of Chait 2081, Nepal Clearing House Limited (NCHL) officially announced the successful preparation of the National Card Switch (NPS-NCS) and the Domestic Card Scheme (NEPALPAY Card) in a formal ceremony. The event was attended by Governor Maha Prasad Adhikari and several key stakeholders from Nepal Rastra Bank, financial institutions, and payment system providers.
Overview of the NPS-NCS and NEPALPAY Card
At the event, NCHL confirmed that it had received final approval from Nepal Rastra Bank for the NPS-NCS and NEPALPAY Card. The NEPALPAY Card was officially unveiled, and the Governor demonstrated the card’s functionality in a controlled environment through POS and ATM transactions.
Key Features of the New Payment System
Under the National Payment System (NPS) framework, the National Card Switch (NCS), centralized settlement and dispute management systems, AI/ML-based front-end and risk management systems, as well as the Domestic Card Scheme (NEPALPAY Card) have been successfully established.
The completion of the preparation of the NPS-NCS and NEPALPAY Card marks the final phase of infrastructure development. After the required certifications and integration of the financial institution switches, the system will be fully operational.
Impact on Nepal’s Payment Ecosystem
Once fully implemented, the NPS-NCS will allow banks and financial institutions to integrate their switches with the Domestic Card Scheme for issuing and acquiring cards. This will enable interoperability across different card schemes.
NCHL has already signed memorandums of understanding with several banks and financial institutions, including Citizens Bank International, Goodwill Finance, Himalayan Bank, Machapuchhre Bank, Muktinath Development Bank, NMB Bank, Prabhu Bank, Sangrila Development Bank, Siddhartha Bank, and others. These partnerships will help in advancing the NEPALPAY Card project.
Future Plans and Expansion
In the coming months, more banks, financial institutions, and payment service providers (PSPs) will be included in the NEPALPAY network. As the system expands, NEPALPAY Card holders will be able to use the card at POS terminals, ATMs, and eventually for e-commerce transactions as well.
Advantages of the New System
With the implementation of the National Card Switch (NPS-NCS), Nepal aims to reduce the costs of domestic card transactions, ensure data localization, and promote the development and adoption of advanced tools in the digital ecosystem. The NEPALPAY Card uses EMV chip technology for secure transactions, and it has partnered with international card provider Novatech for international transactions.