Lumbini Bank Joins NEPALPAY & NPS-NCS
8th April 2025, Kathmandu
Lumbini Development Bank (LDB), one of Nepal’s leading development banks, has taken a significant step forward in enhancing the digital banking infrastructure by joining the NPS-National Card Switch (NPS-NCS) and the NEPALPAY Card network.
Lumbini Bank Joins NEPALPAY & NPS-NCS
This strategic move is set to revolutionize the way Nepali consumers access and use financial services, paving the way for more efficient, secure, and cost-effective digital payments across the country.
Understanding NPS-NCS and NEPALPAY Card Network
The National Payment Switch (NPS) and National Card Switch (NCS) are initiatives led by Nepal Clearing House Ltd. (NCHL), designed to facilitate seamless interoperability between different card networks and payment systems in Nepal. These platforms allow banks, financial institutions, and payment service providers to offer enhanced services to customers by ensuring smooth routing and settlement of domestic card transactions.
On the other hand, the NEPALPAY Card is a domestic card scheme designed to meet the growing need for secure and accessible payment solutions for Nepalese customers. This initiative allows financial institutions to issue and acquire cards, enabling local cardholders to make payments easily within Nepal and across participating institutions.
Key Features of the Agreement Between Lumbini Development Bank and NCHL
The landmark agreement between Lumbini Development Bank and NCHL enables LDB to become a principal member of both the NPS-NCS and NEPALPAY Card network. The signing of this agreement was done by Umesh Regmi, the Deputy Chief Executive Officer of Lumbini Development Bank, and Nilesh Man Singh Pradhan, the CEO of NCHL.
With this partnership, Lumbini Development Bank will be able to issue NEPALPAY Cards to its customers and facilitate card acquisitions. This move will allow the bank’s customers to access a wide range of payment services, boosting the country’s financial inclusion efforts.
Impact on Nepal’s Banking and Digital Payment Ecosystem
The completion of the NPS-NCS infrastructure and the integration of the NEPALPAY Card network a significant milestone in Nepal’s banking and digital payment ecosystem. The collaboration between banks and NCHL is expected to reduce the cost of domestic card transactions, provide a more secure payment environment, and ensure data localization. This transition will ultimately enhance the digital banking experience for all Nepalese consumers.
Once the commercial rollout of NEPALPAY infrastructure is completed, Lumbini Development Bank will be among the first to offer NEPALPAY Cards to its customers. This will enable the bank to join the growing list of financial institutions offering domestic card schemes, contributing to the overall development of Nepal’s digital financial ecosystem.
Why Is This Important for Nepalese Consumers?
For consumers in Nepal, this partnership brings several key benefits:
Lower Transaction Costs: With the implementation of NPS-NCS, domestic card transactions will become more cost-effective, lowering the overall expenses associated with card payments.
Data Localization: The move ensures that sensitive financial data remains within Nepal, complying with local regulations and enhancing security.
Enhanced Financial Inclusion: By offering NEPALPAY Cards, Lumbini Development Bank will increase access to digital financial services for customers across the country, especially those in underserved areas.
Seamless Transactions: The NPS-NCS infrastructure ensures that transactions across different card networks are processed smoothly, enhancing the overall payment experience for consumers.
Lumbini Development Bank’s Role in Nepal’s Digital Transformation
As a prominent development bank in Nepal, Lumbini Development Bank has consistently been at the forefront of modern banking and financial services. With over 600,000 customers across its 89 branches and 20 ATMs, the bank has a strong presence in the country. The integration of NPS-NCS and NEPALPAY Card into its offerings marks a crucial step toward providing its customers with more innovative and accessible financial services.
By adopting these new payment systems, Lumbini Development Bank is contributing to the ongoing digital transformation in Nepal. This partnership will not only provide customers with modern banking services but also support the growth of the country’s digital economy.
Looking Ahead: The Future of Nepal’s Card Ecosystem
The implementation of NPS-NCS and NEPALPAY Card is expected to propel Nepal’s card ecosystem to new heights, positioning the country as a leader in digital payment systems within the region. The involvement of more than 54 banks and financial institutions, along with over 100 non-banking members, ensures that the initiative will have a far-reaching impact.
In the coming years, we can expect more banks and financial institutions in Nepal to join the NPS-NCS and NEPALPAY Card network, further driving innovation and improving the efficiency of the national payment system.
Conclusion
Lumbini Development Bank’s partnership with NCHL to integrate NPS-NCS and NEPALPAY Card into its services is a game-changing move for Nepal’s digital banking sector. It brings substantial benefits to consumers, including reduced transaction costs, enhanced security, and increased access to financial services. As more financial institutions join the network, the impact of these initiatives will be felt nationwide, strengthening Nepal’s position in the global digital economy.
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