23rd March 2023, Kathmandu
The Nepal Clearing House is the first-ever payment system operator (PSO) established in Nepal.
It was incorporated in 2008 under the leadership of Nepal Rastra Bank (NRB) to facilitate interbank transactions, including electronic fund transfer, cheque clearing, and other payment-related services.
The primary objective of the NCHL is to provide a secure and efficient payment system for banks and financial institutions (BFIs) in Nepal.
It operates as a central clearinghouse for the exchange of electronic payment instructions between member banks and financial institutions.
The NCHL operates several payment systems, including the National Payments Interface (NPI), which is a network that enables member banks and financial institutions to exchange payment instructions securely and efficiently.
The NPI also facilitates interbank fund transfers, direct credit and debit transactions, and mobile banking services.
In addition, the NCHL operates the Electronic Cheque Clearing (ECC) system, which enables member banks and financial institutions to exchange cheque images electronically, reducing the time and cost associated with physical cheque clearing.
Overall, the NCHL has played a significant role in modernizing Nepal’s payment system infrastructure and promoting financial inclusion in the country.
Ownership and Governance:
The NCHL is a company jointly owned by Nepal Rastra Bank (NRB), the central bank of Nepal, and commercial banks and financial institutions (BFIs) operating in Nepal.
The company is governed by a board of directors, consisting of representatives from NRB and the member BFIs.
The NCHL operates several payment systems, including the National Payments Interface (NPI), which facilitates interbank fund transfers and direct credit and debit transactions.
It also operates the Electronic Cheque Clearing (ECC) system, which enables member banks and financial institutions to exchange cheque images electronically.
Promoting Financial Inclusion:
The NCHL has been instrumental in promoting financial inclusion in Nepal by facilitating electronic fund transfers, mobile banking, and other payment-related services.
It has also been involved in initiatives to promote digital payments and increase access to financial services in rural areas.
Partnerships and Collaborations:
The NCHL has collaborated with various national and international organizations to improve Nepal’s payment system infrastructure.
It has partnered with the Bill and Melinda Gates Foundation to launch the Nepal Financial Inclusion Project, aimed at promoting financial inclusion in Nepal.
It has also collaborated with international organizations such as SWIFT and Visa to improve cross-border payments and increase the efficiency of Nepal’s payment system.
Awards and Recognitions:
The NCHL has won several awards and recognitions for its contribution to the development of Nepal’s payment system infrastructure.
In 2019, it was awarded the “Best Payment System Provider in Nepal” by Global Banking and Finance Review. In 2020, it won the “Excellence in Payment System Award” at the Fintelekt Awards for Excellence in Financial Services.
How To Use Connect-ips?
I believe you are referring to “Connect-IPS,” which is an electronic payment system launched by the Nepal Clearing House Ltd. (NCHL) to facilitate digital payments in Nepal.
Here are the steps to use Connect IPS:
Register for Connect IPS:
To use Connect IPS, you need to register with the service. You can do this by visiting the website of your bank or financial institution and following the registration process.
Link your bank account:
Once you have registered for Connect IPS, you need to link your bank account to the service. This can be done by providing your bank account details, such as your account number and branch code.
Authenticate your account:
After linking your bank account, you need to authenticate your account. This can be done by providing the OTP (one-time password) sent to your registered mobile number.
Choose a payment option:
Once your account is authenticated, you can choose a payment option. Connect IPS offers various payment options, such as fund transfers, mobile top-ups, utility bill payments, and more.
Enter payment details:
After choosing a payment option, you need to enter the payment details, such as the recipient’s account number, the amount to be transferred, and any other necessary details.
Confirm the transaction:
After entering the payment details, you need to confirm the transaction. This can be done by entering the OTP sent to your registered mobile number.
Once the transaction is completed, you will receive a confirmation message on your registered mobile number and email. It is important to note that the exact steps to use Connect IPS may vary depending on the bank or financial institution you are using.
However, the basic steps outlined above should give you a general idea of how to use the service.
Connect-IPS is an important payment system in Nepal for several reasons:
Facilitates Interbank Transactions:
Connect IPS is a payment system that enables real-time interbank transactions between different banks and financial institutions in Nepal.
This system allows for quick and efficient transfer of funds between bank accounts, which is especially useful for businesses and individuals who need to make urgent payments.
Convenience and Accessibility:
Connect IPS provides a convenient and accessible platform for making payments and conducting transactions.
It eliminates the need for physical visits to banks and reduces the time and cost associated with traditional payment methods. Users can make payments from their mobile devices or computers, making it easy to use and widely accessible.
Secure and Reliable:
Connect IPS uses advanced security measures to protect users’ data and ensure the security of transactions.
The system is designed to meet international standards for security and reliability, providing users with confidence and trust in the platform.
Promotes Financial Inclusion:
Connect IPS is an important tool for promoting financial inclusion in Nepal. It allows people in rural and remote areas of the country to access financial services and conduct transactions without the need for physical visits to banks.
Supports Digital Economy:
Connect IPS is an important component of Nepal’s digital economy, enabling businesses and individuals to conduct transactions online and promoting the growth of e-commerce.
It helps to reduce the reliance on cash transactions, which can be expensive and prone to fraud.