NCHL to Strengthen the Electronic Payment System in Nepal with UKaid Sakchyam’s SupportJune 4, 2019
Kathmandu, June 4: Nepal Clearing House Limited (NCHL) announced its partnership with UKaid Sakchyam Access to Finance Programme to boost the growth of electronic payment system in Nepal. The partnership was officially launched at the signing ceremony held on June 3 where Mr Neelesh Man Singh Pradhan, CEO, NCHL and Mr Nirmal Dahal, Team Leader, Sakchyam signed and exchanged the partnership certificates.
The project aims to mitigate the challenges and constraints of the digital payment mechanism in the country and help create a strong digital payment ecosystem. “We have been establishing and operating various payment systems in line with Nepal Rastra Bank’s national payment system development strategy, with current strategic direction towards the consolidation of such payment systems that will support the BFIs and also facilitate various stakeholders of the payments industry for extending the digital payments services. And this partnership with Sakchyam is expected to scale-up our initiatives,” said Mr Pradhan, CEO of NCHL at the event held at Hotel Radisson, Lazimpat.
The project has identified three major ventures to achieve the intended goal. The first is to promote the connectIPS e-Payment system to adapt it as corporate module/channel and help incorporate the small and medium institutions in the payment process. Another is to develop and roll out the consolidated National Payment Interface (NPI) and the last venture is the expansion of the Settlement Guarantee Fund (SGF), which will aid in mitigating the settlement risk of mobile and web-based financial services.
Speaking at the signing ceremony, Chief Guest of the event, Mr Dev Kumar Dhakal, Executive Director of Nepal Rastra Bank said, “While the development of infrastructure will be continued by the NRB, NCHL, BFIs, PSPs and PSOs. We now also need to focus on joint promotion and increasing awareness for the acceptance of digital payment services. And at the same time should also focus on mitigating the possible risk of using digital payment and I feel that today’s partnership between Sakchyam and NCHL is a step towards this direction.”
The collective beneficiaries of the project will include bank customers throughout Nepal, banks & financial institutions (BFIs), government/semi-government organizations, SMEs, PSP/PSOs, etc. The project will also extend its support to the Government’s policy towards creating a digital economy with increased P2P, P2G, G2P, C2B and B2C payments on a countrywide scale.
“Sakchyam has been working in modernization and strengthening of Payment Systems in Nepal. Sakchyam has a vision to support the retail payment ecosystem of Nepal as well and working with the key stakeholders. The partnership with NCHL is an initiative to provide a common interface for multiple banks, financial institutions and PSPs/PSOs to access different institutions/customers and render the services seamlessly,” Mr. Dahal, Team Leader of Sakchyam reiterated the programme’s continuing effort to support the government’s mission to bolster the digital economy.
NCHL is promoted by Nepal Rastra Bank and banks & financial institutions to establish multiple national payments infrastructures of which it has been operating NCHL-ECC, NCHL-IPS and connectIPS e-Payment systems with participation from the majority of the BFIs and few non-bank institutions.