KATHMANDU: Mahalaxmi Bikas Bank and Nepal Clearing House Limited (NCHL) have signed a memorandum of understanding (MoU) for facilitating international transaction payments between Nepal and India.

Issuing a recent statement, Mahalaxmi Bikas Bank claimed that it is the first development bank to enter into an agreement with NCHL for payments of international transactions. The bank has been able to provide this facility as there are Nostro accounts operating in India, the statement added.

As per the agreement, Indian citizens in Nepal will be able to directly transfer funds to their accounts in India through any UPI handle linked account opened in Mahalaxmi Bikas Bank under the limit set by Nepal Rastra Bank.

Likewise, Nepali citizens in India can transfer money directly to Mahalaxmi Bikas Bank's UPI handle linked account in Nepal by using the UPI enabled app, subject to the limits set by the regulatory body in India.

This cross-border payment is expected to directly benefit students, pilgrims, tourists and customers going to India for medical treatment and vice versa.

Chief Executive Officer of Mahalaxmi Bikas Bank Dipesh Lamsal and Chief Executive Officer Nileshman Singh Pradhan on behalf of NCHL signed the agreement.

Embracing the slogan of "Strong Bank, Successful Cooperation", Mahalaxmi Bikas Bank said it has been continuously providing quality financial services at the doorsteps of Nepalese citizens for the past 29 years.

In addition, the 22nd annual general meeting of the bank held on January 13, 2024 also passed a resolution to bring foreign banks or financial institutions as strategic partners, the statement added.