The central banks of India and Nepal on Thursday signed terms of reference for the integration of fast payment systems of both countries - the Unified Payments Interface (UPI) of India and the National Payments Interface (NPI) of Nepal.

The integration is aimed at facilitating cross-border remittances between India and Nepal by enabling users of the two systems to make instant, low-cost fund transfers. The collaboration between the Reserve Bank of India and Nepal Rastra Bank in linking their fast payment systems through the UPI-NPI linkage will further deepen financial connectivity and reinforce the enduring historical, cultural, and economic ties between the two countries, RBI said in a statement.

After the signing of the terms of reference between the central banks, the necessary systems will be put in place for the interlinking of UPI and NPI. The formal launch of UPI-NPI linkage will be done at a later date, the RBI said.