Electronic Payments and Safety Precautions in Nepal

9th May 2023, Kathmandu

Recently, there has been a significant increase in the number of people making electronic payments.

The volume of transactions has increased since electronic payments can be made easily in every sector, from daily consumer goods.

Citizens’ lives have also become easier due to the QR code payment which is widely available. There has been an increase in the number of electronic payment devices because it is possible to live a daily life even if there is no cash.

How many types of electronic payment-related organizations are there in Nepal?

There are two types of electronic payment organizations in Nepal namely Payment System Operator (PSO) and Payment Service Provider (PSP).

What precautions should be taken while doing electronic payment transactions?

Users shall not share their Secret Password, One Time Password (OTP), or sensitive details (eg; account number, date of birth, citizenship or passport number, etc.) by any means, shall change their passwords from time to time, and shall keep such passwords confidential.

In the event of theft or loss of payment equipment, such as a card or mobile phone, the relevant service provider should be notified immediately, and the service should be blocked.

In Nepal, there has recently been an upsurge in electronic commerce. As a result of allegations that various criminal individuals/groups are scamming clients through various techniques when conducting business at home via various electronic devices, Nepal Rastra Bank specifically urges that electronic payment users pay special attention to the following issues:

1. Using social media to ask for money in the name of someone you know, requesting Internet Banking or Mobile Banking username and password, pretending to have called from the bank, creating a fake website and obtaining confidential information from customers, requesting money under the guise of handing over lottery money after claiming to have won a large lottery, It appears that great care must be taken to avoid this form of fraud when conducting electronic transactions, as it has been claimed that there are frauds such as persuading people to invest in gadgets that have been deemed illegal by displaying eagerness for excessive gains.

2. Never, ever provide your secret password, OTP, or any other important information to a stranger. Passwords for smartphones and other devices, as well as APPs, should be changed regularly. Such passwords should be kept private.

3. If you seek money by sending a message via social media or any other electronic means, you should only give the money after confirming whether the individual requested the money or not.

4. Do not download unnecessary and unauthorized apps on your mobile phone or other devices. Thus all your sensitive information can be detected by criminal groups while downloading unauthorized apps.

5. Anyone sending a barcode or QR code under the guise of paying money or sending a message stating that the APP’s password is required should be regarded as suspect. There is no need to transmit a Barcode, QR code, or password to receive payment or money.

6. Before completing electronic transactions using any website, ensure that the official website of the corresponding institution is/is not available. If the address of any website begins with “https://,” it is assumed that it is safe, reputable, or trustworthy, thus make sure that the address does not begin with “https://.”

NEPALPAY

The NEPALPAY Instant is an extra function enabled in NPI through connectIPS to permit VPA-based transactions between participating members. It is powered by the Retail Payment Switch under the National Payment Switch.

An inter-network Virtual Private Address (VPA)-based fund transfer is now possible. Additionally, The VPA is a one-of-a-kind identification that can be a cellphone number, e-mail address, or username assigned to members of member banks/financial institutions, payment system providers (PSPs), or connect-IPS users.

The sender (payer) can commence a transaction from the NEPALPAY Instant, after which the fund transfer instruction will be initiated to the respective receiver depending on the specified VPA. Similarly, The service is now available to connectIPS users via the connectIPS web interface and will be expanded to other channels in the near future.

How to initiate a transaction in NEPALPAY Instant:

1. Enter your Username and Password into www.connectips.com.
2. Select NEPALPAY Instant from the available Fund Transfer options.
3. Choose your debiting account and the Network/Bank under receiver details.
4. Fill in the remaining information and click Transfer.
5. Recheck the information and then press the “Make Payment” button.
6. Use your Transaction Password and/or the OTP sent to your registered cellphone number and email address.
7. To complete the fund transfer, click Submit.

Transaction Amount Slab-based Fee Structure for general customers of BFIs and PSPs is as follows:  

The charges apply when initiating a fund transfer from connect-IPS web, mobile app, member bank/financial institution alternate channels of mobile & internet banking, Cash In / Out in various member wallets (PSPs), and various service payments where the end user is required to pay.

Additionally, The Inland Revenue tax payment of the Government of Nepal is already cross-subsidized at NRs 2-5. For more information, see connect-IPS Fees and Charges>.

What is the transaction limit in connect-IPS?  

*Limit is per user per bank
*Respective banks and financial institutions may have different limits as per their internal policy
*Limit may change with /without notice as per Nepal Rastra Bank directive