Nepal Bank Joins NPS-NCS and NEPALPAY Card

5th July 2026, Kathmandu

Nepal Bank Limited and Nepal Clearing House Limited have officially entered into a strategic partnership agreement for principal membership in the NPS National Card Switch and the NEPALPAY Card scheme.

Nepal Bank Joins NPS-NCS

The institutional alliance marks a major milestone in accelerating the digital transformation roadmap of the country’s oldest commercial banking institution.

The formal agreement documents were signed and exchanged during a special corporate session held at the capital city. The signing ceremony was led by Tilak Raj Pandeya, Chief Executive Officer of Nepal Bank Limited, and Neelesh Man Singh Pradhan, Chief Executive Officer of Nepal Clearing House Limited.

STRATEGIC INTEGRATION AND CARD SERVICES EXPANSION

Under the terms of this newly established operational infrastructure framework, the commercial bank will acquire full capabilities to independently issue and acquire specialized domestic cards. The bank will roll out these services to its massive consumer base immediately following the successful technical completion of the internal core switch integration with the central system.

The collaboration is expected to significantly boost the market footprint of Nepal Bank Limited by allowing it to provide localized national card solutions. The implementation of the new card ecosystem introduces several distinct structural advantages for the broader financial landscape:

• Central Payment Infrastructure: Serving as a robust national routing and settlement terminal specifically engineered for managing domestic card transactions.
• Total Interoperability: Establishing seamless data sharing networks that connect diverse Point of Sale terminals and Automated Teller Machines across different banking lines.
• Transaction Cost Reduction: Minimizing traditional processing fees by eliminating the reliance on expensive international clearing houses for internal domestic transactions.
• Regulatory Data Localization: Enforcing strict compliance rules by retaining sensitive consumer transaction records inside national borders.
• Financial Ecosystem Innovation: Supporting the development of customized digital products, loyalty reward programs, and contactless payment software modules.

GLOBAL NETWORK CORRELATION AND ACQUIRING MECHANISMS

The clearing house has recently rolled out the domestic card as a foundational national card scheme designed to establish sovereign payment capabilities. To ensure comprehensive utility for traveling consumers, the organization has secured widespread international acceptance through a cross border collaboration with the global Discover Network.

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The specialized payment tool operates directly under the regulatory guidelines of the National Payment Switch. The system allows participating commercial banks, development financial institutions, licensed payment service providers, and payment system operators to issue branded cards. These units remain fully compatible with all electronic terminals stationed across the country and around the world.

The technical design also features unique bidirectional processing capabilities. The network infrastructure allows international Discover cards, including standard RuPay cards issued by Indian banking organizations, to be read and accepted at domestic merchant stations operating inside Nepal.

MARKET ENROLLMENT STATUS AND INSTITUTIONAL TRACK RECORD

The domestic card scheme has rapidly gained operational momentum across the national banking fraternity over the past several quarters. The platform has already enrolled 35 major banks and financial institutions as primary principal members to support payment modernization goals.

The system is actively live with card issuance services running successfully across 7 distinct commercial entities, while localized merchant acquiring systems are fully functional across 10 major institutions. The regulatory body expects these numbers to scale up dramatically as more banks complete their automated host system modifications in the coming months.

Nepal Bank Limited continues to stand as a pioneering leader within the domestic commercial banking domain, serving a highly diverse customer base spanning across all seven provinces. In recent times, the state-influenced financial house has been aggressive in driving advanced automation programs to optimize its administrative service delivery channels. By expanding its digital infrastructure and building a strong network of card users, the organization continues to reinforce its commitment to providing secure, efficient, and highly accessible financial solutions nationwide.

For More: Nepal Bank Joins NPS-NCS