In response to escalating fraud risks and the rapidly evolving digital finance landscape, Nepal Rastra Bank (NRB) has issued the Unified Payment System Directive 2081, a comprehensive update to its 2080 directive. This refined regulation emphasizes risk-based oversight, AI-driven fraud detection, settlement guarantee mechanisms, AML/CFT compliance, and improved customer-centric protections.

Backed by verified data from the NRB Payment Systems Oversight Report 2023/24, this article provides a thorough breakdown of what changed, why it matters, and how these changes impact the financial ecosystem in Nepal, including platforms like Khalti, eSewa, and the expanding mobile banking ecosystem.

A Regulatory Pivot Toward Resilient Digital Payments in Digital Nepal

Nepal's digital finance sector is at a critical turning point. From mobile wallets facilitating daily payments to QR-based cross-border retail payments, Digital Nepal is gaining momentum. Financial inclusion is on the rise, but this rapid shift also brings challenges such as cyber threats, settlement risks, compliance gaps, and user grievances.

To address these challenges, NRB introduced this updated directive to build a secure, inclusive, and future-ready digital payment ecosystem that supports the vision of Digital Nepal.

Why Was the Directive Updated?

Nepal Rastra Bank (NRB) introduced these new rules because of growing concerns in the digital payment sector. As more people began using mobile wallets, QR codes, and mobile banking apps like Khalti, NRB saw a rise in fraud and complaints. People were being tricked into sending money to the wrong accounts, and failed or delayed payments were becoming more frequent, damaging trust in digital finance.

Another major concern was that many payment companies lacked smart systems to detect fraud early. Most could only react after something went wrong. NRB recognized the need for predictive fraud detection tools to protect users.

Cybersecurity was also a weak point. Many providers were not regularly updating their systems or conducting audits, leaving users vulnerable to data theft and system failures.

Additionally, earlier regulations did not accommodate emerging needs like cross-border QR payments or effective checks against illegal online transactions, such as hundi and unregulated gaming platforms. NRB wanted to fill these gaps and align Nepal with global fintech standards.

After discussions with payment providers, banks, and experts, NRB designed Directive 2081 to act proactively rather than reactively, ensuring a safer digital financial experience for all citizens of Digital Nepal.

Major Amendments in the Unified Directive 2081

1. Long-Term Planning for Business Continuity and Growth

What it means:
Digital payment platforms like Khalti and others must now prepare a three-year business continuity and growth plan. This includes how they’ll continue operating during emergencies and scale their services safely.

Key components:

• Plans for handling crises like system crashes or hacking
• Tools to monitor risks (like a digital health report)
• Clear roles for staff during disruptions
• Deadlines for response and recovery steps

Why it matters:
A solid plan ensures payment services stay reliable even during unexpected problems, helping build public trust in mobile banking and digital payment systems.

2. Use of Smart Technology to Prevent Scams

What it means:
NRB wants digital platforms, including Khalti, to use Artificial Intelligence (AI) and Machine Learning (ML) to detect suspicious activity before it becomes a serious threat.

Benefits:

• Catch fraud in real time
• Spot unusual account behavior
• Monitor risky transaction patterns

Why it matters:
These technologies help stop scams before money is lost, making the entire mobile banking and wallet system more secure.

3. Creating a Financial Safety Cushion (Settlement Guarantee Fund)

What it means:
When money moves between companies or banks, there’s a risk of failed transactions. NRB now requires companies to create a Settlement Guarantee Fund, which is like an emergency fund to protect everyone involved if something goes wrong.

Why it matters:
This helps maintain payment system stability, ensuring people using Khalti, eSewa, or other platforms don’t lose money due to backend issues.

4. Stronger Protection of Technology and Data

What it means:
Payment companies must now:

• Regularly check their systems
• Plan for cyberattacks and failures
• Use encrypted, secure messaging and login systems

Why it matters:
With more people using mobile banking apps, these safety measures protect user data and prevent service breakdowns.

5. Stopping the Illegal Use of Payment Systems (AML/CFT Compliance)

What it means:
Some people misuse digital platforms for illegal money transfers or gambling. Companies must now:

• Monitor high-risk users
• Track suspicious payment patterns
• Report any suspicious activity to NRB

Why it matters:
This helps prevent misuse of platforms like Khalti and strengthens Nepal’s fight against financial crime.

6. More Control and Safety for Users

What it means:
Users will now get more control over their digital accounts. Payment companies must:

• Let users pause or deactivate services from their app
• Send instant alerts after every transaction
• Add extra login security with Two-Factor Authentication (2FA)

Why it matters:
This improves user trust and helps people feel more in control of their digital finances.

7. Making International QR Payments Possible

What it means:
Now, QR payments across borders are allowed with NRB approval. For example, a tourist from India can now use a UPI QR code to pay a hotel in Nepal via Khalti or similar platforms.

Why it matters:
This step supports Digital Nepal’s global integration goals and makes payments more convenient for tourists and international users.

Digital Payment Landscape: Data Highlights (FY 2081)

Source: Payment Systems Indicators of 2081 Magh

Spotlight: Khalti–IME Pay Merger and Its Impact

The proposed merger between Khalti and IME Pay, two of Nepal’s largest digital wallet platforms, could be a defining moment for the industry. If approved, it will consolidate a massive user base and transaction volume under one umbrella, effectively creating a dominant force in the digital wallet market.

What this means:

• Users might benefit from better interoperability, expanded services, and shared merchant networks.
• Competition with mobile banking platforms could intensify, pushing banks to innovate faster.
• NRB’s new directive will serve as the regulatory backbone to ensure this larger entity operates transparently, securely, and within consumer-friendly guidelines.

This potential consolidation, combined with Directive 2081, could redefine digital payments in Nepal, driving faster innovation while also requiring stronger oversight and risk controls.

Wallets vs Mobile Banking: A Comparative Snapshot

Insight: While mobile banking still leads in transaction value, digital wallets like Khalti are quickly closing the gap in user adoption and transaction frequency. The merger between leading wallets and NRB’s new directive will likely accelerate this shift, pushing both ecosystems toward broader interoperability and shared user experience.

Institutional and Structural Reforms

1. PSOs Must Become Public Limited Companies by July 2028

Companies managing digital transactions must upgrade to Public Limited Companies, which involves stronger reporting, transparency, and public accountability.

2. All Payments Must Go Through Licensed Operators

All digital payments must be processed through NRB-approved operators, not informal systems. This ensures safety and proper supervision.

3. All Transaction Records Must Be Available for Review

Payment companies must keep detailed records and make them available for audits or fraud investigations. This boosts accountability.

Who Benefits from Directive 2081?

Payment Companies (like Khalti):

• Better tools to fight fraud
• Stronger business continuity
• Increased credibility

Consumers:

• Safer transactions
• More control over digital services
• Easier cross-border payments

Regulators:

• Improved oversight
• Better data tracking
• Stronger fraud prevention framework

Comparative Snapshot: Directive 2080 vs 2081

Real-Life Impact: Cross-Border QR Use Case

A tourist from India visits Pokhara and pays at a hotel by scanning a UPI QR code connected to Nepal’s Khalti system. This wasn’t possible under older rules. Now it is — thanks to Directive 2081, making digital travel payments easier and boosting local tourism revenue.

Best Practices Moving Forward

• Invest in AI tools for fraud detection
• Set up Settlement Guarantee Funds early
• Upgrade customer service for better app control
• Strengthen tech audits and cybersecurity
• Work closely with PSOs for better compliance

Conclusion: A Future-Ready Framework

The Unified Payment System Directive 2081 isn’t just another set of rules. It is a powerful step forward in shaping how Nepal’s digital payment systems will work, making them safer, smarter, and more reliable for everyone.

In a time when digital transactions are becoming part of our everyday lives, people need more than just convenience. They need security, transparency, and trust. And that is exactly what this directive aims to deliver. It puts stronger protections in place for users, ensures companies are better prepared to handle risks, and builds a solid foundation for the digital economy we are all moving toward.

What is clear is that NRB has done its part by laying out the vision and the framework. Now it is over to the companies, the payment service providers, operators, banks, and tech partners, to step up and turn that vision into reality.

Because the future of payments in Nepal is not just about sending money faster. It is about giving people the confidence to embrace digital tools, knowing they are protected every step of the way. And with Directive 2081, we are heading in the right direction.

Nepal’s digital finance story is still being written. And this directive is one of the most important chapters yet.

Additional Resources:

• Salary Slip vs. Salary Certificate: Understanding the Difference
• Upcoming IPOs in Nepal: How to Use Mero Share to Apply and Track Results