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Fintech & payments regulation in Nepal (2026)

Fintech and digital payments in Nepal: licensing regime.

Nepal operates a dedicated, in-force licensing regime for digital payments. The Payment and Settlement Act, 2019 makes it unlawful to operate as a Payment System Operator (PSO) or Payment Service Provider (PSP) without prior NRB approval, and NRB has issued and updated a specific Licensing Policy (latest version 2079/2023) governing letters of intent, capital, validity and renewal. As of mid-July 2024, 35 institutions were licensed (9 PSOs and 26 PSPs), and national instant-payment rails (the National Payment Switch / NEPALPAY) are operational, though there is no formal statutory open-banking framework.

Last verified Official sources first · MethodologyCompare Nepal with other countries

Legal framework

Payment and Settlement Act, 2075 (2019) + NRB Act 2002, implemented via Nepal Rastra Bank's Licensing Policy for Institutions that Perform Payment-Related Work 2079 (2023); regulator: Nepal Rastra Bank (NRB), Payment Systems Department

Key points: digital payments & fintech in Nepal

  1. Primary statute & mandatory licensing

    The Payment and Settlement Act, 2075 (2019) is the governing law; Section 5 prohibits operating as a PSO or PSP without prior NRB approval/license. The NRB Payment Systems Department regulates and supervises payment institutions.

    nrb.org.np nrb.org.np

  2. Dedicated licensing policy (2023)

    NRB brought into effect the Licensing Policy for Institutions that Perform Payment-Related Work 2079 on 2 January 2023, replacing the 2076 (2019) policy. It sets minimum paid-up capital, letter-of-intent and application stages, and applies to entities operating payment work in or from Nepal.

    nrb.org.np nrb.org.np

  3. Two license classes (PSO / PSP)

    NRB licenses two categories, Payment System Operators (clearing/switching infrastructure) and Payment Service Providers (wallets, gateways, instruments). Licenses are valid for 5 years and renewable (renewal fee Rs. 25,000), with renewal applications due ~90 days before expiry.

    nrb.org.np nrb.org.np

  4. Instant-payment rails operational

    Nepal Clearing House Limited (NCHL), under NRB's initiative, operates the National Payment Switch (NPS), including the real-time Retail Payment Switch and NEPALPAY Instant, a VPA-based direct-credit instant rail, plus interoperable QR (NEPALPAY QR) and connectIPS.

    nchl.com.np nrb.org.np

  5. E-money / wallet transaction limits

    NRB directives set quantitative limits on e-money: wallet top-ups capped (e.g. ~NPR 200,000/day, NPR 1m/month) and wallet-to-wallet transfers (NPR 50,000/day, NPR 500,000/month), with NRB amending online-payment directives in 2025 to curb fraud.

    kathmandupost.com nrb.org.np

  6. BNPL via NRB credit guidance, no open-banking statute

    BNPL/digital lending is handled through NRB lending guidance (ceilings around Rs. 300,000-500,000 with tenures up to ~3 years) rather than a standalone BNPL law; there is no formal statutory open-banking mandate, though API interoperability exists via NCHL's NPS.

    nrb.org.np nchl.com.np

Sources

  1. nrb.org.np/departments/psd/
  2. nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf
  3. nrb.org.np/ofg/licensing-policy-for-payment-related-institutions-2073-2/
  4. nrb.org.np/psd/payment-systems-oversight-report-2080-81-2023-2024/
  5. nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National
  6. nchl.com.np/retail-payment-switch-rps/
  7. nchl.com.np/nepalpay-qr/
  8. kathmandupost.com/money/2025/03/07/nepal-s-central-bank-amends-online-payment-system-di

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 25 May 2026. Methodology & how to cite · State of Technology Regulation 2026