Nepal’s History In Digital Payment System, NCHL

Nepal history in Payment System

December 6, 2019, Kathmandu

Nepal Clearing House Limited is a digital system that makes check clearing possible in one day. It was established 10 years ago under the joint venture of banks and financial institutions and Smart Choice Technology. Looking back to the history, it was mandatory to wait for months for a check clearing but, Nepal Clearing House has made the process easier for customers.  Rastra Bank has also invested in Nepal Clearing House Limited. The company has also started other payment-related activities for the ease of the people. Nileshman Singh Pradhan is the head of the company. Pradhan is the Chief Executive Officer (CEO) since its beginning. He has completed BE from Kathmandu University and an MBA from the Indian Institute of Technology.  Pradhan has more than two years of national and international experience in banking. Nepal clearing House has an important role to play in customer services.

At first tent clearing job was started it was only clearing the job.  Work was on the verge of underway to expand the Nepal national payment system. We have started some new work and have been working on some infrastructure.

NCHL IPS has been in operation for the last three years. It has the facility for transferring funds from one bank to another based on the protocols without checking. Also, connected IPS has the facility of making real-time payment which has operational about a year ago. It has various arrangements that can be made straight via bank account via various gadgets such as mobile and computers by the customers of various payments and fund transfer bank.

It is the job of the clearing house to establish and operate the payment systems required for payment, clearing, and clearing of various financial instruments including payment orders, cards and so on. Of the South Asian countries, a clearing house was established in Nepal at a very later time. Earlier, a clearing house was operated by a body of Rastra Bank.

Pradhan said, “ We are now progressing in technology. Beginning with check clearing, our journey is now progressing gradually, establishing and operating various payment infrastructures. Due to the cooperation and coordination of various agencies including Nepal Rastra Bank, bank financial institutions, the payment systems brought by the clearing house have been implemented smoothly.”

Nepal Clearing House is a slightly different organization. Its purpose and method of operation are different. The clearing house aims to develop the payment sector by establishing, operating and expanding the infrastructure of the national payment system. Accordingly, NCHL has been providing various payment systems for payment to banks and financial institutions.

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