Nepal Rastra Bank's New Notice on Electronic Payments: What's in it?

A detailed look at Nepal Rastra Bank’s new provisions on electronic payments, covering transaction limits, business rules, and real-time settlements.

Nepal Rastra Bank has recently issued a new notice outlining detailed provisions for electronic payment transactions, a document that covers everything from transaction limits and fee exemptions to system access procedures and settlement mechanisms.

In this notice, the central bank outlines the rules for all three electronic transaction systems currently running Nepal’s financial network. Each system is detailed with its own structure, safeguards, and rules of use, all designed to make digital payments faster, safer, and reliable for everyone.

In this article, we will thoroughly unpack every key provisions outlined by the NRB in the October 7 notice, explaining what is permitted, what is restricted, and how these collective rules work together to guide Nepal’s accelerating digital economy.

But before diving into the rules themselves, it’s worth understanding the systems at the heart of it all, and why Nepal Rastra Bank believes the country needs three separate digital payment frameworks instead of one universal system for everyone.

2. Understanding the Three Payment Systems

To make sense of the new rules, let’s start with the basics. The Nepal Rastra Bank has divided all electronic payments into three main systems, depending on their size and purpose:

1. Retail Value Payment System (RVPS) – for small, everyday payments
2. Special Payment Services for Business Purposes – for company-level transactions
3. Large Value Payment System (LVPS) – for high-value transfers between banks or corporates

Let’s unpack these in detail; why each system exists, and why Nepal Rastra Bank didn’t just build one giant “universal” system.

2.1 The Retail Value Payment System (RVPS)

 The RVPS is built for speed, simplicity, and accessibility. You’re here when you pay your internet bill, send money to a friend on esewa/Khalti, or scan a QR code at your local teashop.

The NRB keeps this system light on its feet: low limits, instant transactions, and minimal fuss. Anyone with a smartphone can zap money securely in seconds. But you can’t exactly drive a bus down a bike path, right? This system has caps for a reason. If a business tried to push Rs. 30 lakh in salaries through this retail lane, the whole thing would choke up and risk mistakes. The RVPS is optimized for thousands of tiny transactions per second, not a handful of massive ones.

When the payments get heavy, businesses need a completely different setup, which brings us to Special Payment Services for Business Purposes.

2.2 Special Payment Services for Business Purposes

This system is built for businesses that need to move big chunks of money across multiple accounts, usually all at once. Imagine a company with 300 employees across five different banks. If they tried paying salaries through the basic retail system, they’d be hitting daily limits, struggling with endless manual transfers, and dealing with late or mismatched payments. It’d be a nightmare.

That's why the NRB created services like Corporate Pay and Inter-Bank Fund Transfer for Business. These systems operate under higher limits and different rules, letting companies push payroll and vendor invoices in a few bulk clicks, schedule payments exactly when they need them, and connect directly with their accounting software.

In short, this lane is less about "bigger amounts" and more about pure business efficiency like cutting out paperwork and getting rid of the dependence on physical cheques. But even this system has a ceiling; it handles operations, not colossal financial settlements. 

That's where the next system takes over.

2.3 The Large Value Payment System (LVPS)

Here we hit the top tier: the Large Value Payment System (LVPS). This is where banks, governments, and giant corporations move serious money using the Real Time Gross Settlement (RTGS) system.

Transactions here are usually over Rs. 200,000, and the name says it all: Real Time. The money leaves one account and appears instantly in another, with zero waiting or batch processing.

Why the special treatment? Because when an importer is paying Rs. 2 crore for goods or a bank is settling its massive interbank position, timing is sacred. A delay of even a few minutes can throw off their entire liquidity, accounting, or compliance.

The LVPS is essentially the backbone of Nepal’s entire financial system. It's managed directly by the NRB, making sure the country’s biggest transactions clear instantly, securely, and with total oversight.

And for payments that can wait, like bulk transfers between banks done quietly at the end of the day, the NRB routes them through the Inter-Bank Payment System (IPS). Think of the IPS as the overnight cargo train: it's not instant, but it's efficient and cheaper for non-urgent money movements.

2.4 Why Three Systems Are Better Than One

If this sounds like overkill, it’s not. It's smart engineering. The separation is completely intentional

The RVPS makes daily life easy and inclusive for consumers. Business Payment Services give institutions the structure and power they need. The LVPS (and IPS) maintains financial stability, keeping the banking sector's massive settlements smooth and risk-free.

By keeping these systems separate, the Nepal Rastra Bank ensures safety, efficiency, and resilience. The small-payment network doesn't get overloaded. The big payments stay secure. And the whole financial ecosystem moves in harmony; from a Rs. 50 QR scan to a Rs. 50 million bank transfer.

Now that we’ve dissected each system in brief, let’s move on to specific provisions under these systems. 

3. Provisions Under the Retail Value Payment System (RVPS)

RVPS is the part of Nepal’s digital backbone that Nepal Rastra Bank designed for speed, convenience, and inclusion, but also for safety. And that’s where its real genius lies: it feels effortless to the user, but under the hood, it runs on a strict set of rules to keep your money (and the system itself) secure.

Let’s walk through those rules regarding what you can do, what you can’t, and where Nepal Rastra Bank gives you full freedom.

3.1 Transaction Limits, And Why They Exist

Just because payments are digital doesn’t mean they’re limitless. Every transaction moves through a network of banks, payment gateways, and settlement servers, all of which need to balance speed and security.

To keep this balance, Nepal Rastra Bank sets clear daily and monthly ceilings for different types of transactions:

These numbers might look like technicalities, but they tell a story of trust with guardrails, and these limits are Nepal Rastra Bank’s way of telling us: “Move money freely, but safely.”

They protect users from fraud, keep the network stable, and ensure small-value payment tools don’t turn into unregulated financial systems.

3.2 Where the Limits Don’t Apply

But Nepal Rastra Bank also knows when to step aside. There are certain payments that are simply too important to be throttled by limits such as taxes, utilities, or anything tied to public service or compliance.

So here’s where the ceiling disappears entirely:

1. Merchant and Online Payments
   No limit on payments for goods and services, whether in-store or online. That includes debit cards, credit cards, prepaid cards, QR payments, and wallet-based transactions.
2. Government and Public Service Payments
   Taxes, revenues, fines, vehicle fees, registration and service charges are all uncapped. The goal here is to make sure the government never becomes a bottleneck for digital users.
3. Utilities and Essential Services
   Water, electricity, and telecommunications fees can be paid in any amount.
4. Social and Institutional Payments
   Contribution-based Social Security Fund (SSF) payments, school fees, and insurance premiums are also outside the cap.
5. Personal Transfers to Self-Owned Accounts
   No limit when you move money from your wallet to your own linked bank account, or between your own accounts within the same bank.

These exceptions are where regulation meets practicality. They make sure Nepal’s essential transactions always go through instantly, without friction.

3.3 Zero Charges and Free Resets

In an age where service fees seem to pop up everywhere, Nepal Rastra Bank’s rule here feels almost radical:

No extra charges for domestic digital payments.

That means when you pay for goods or services inside Nepal (merchant payment) through a debit card, credit card, prepaid card, wallet app, or mobile banking, you should never be charged extra for choosing the digital route. If you’re being asked to pay a “QR charge” or “digital convenience fee,” you’re well within your rights to say no.

And it doesn’t stop there. If you ever forget your mobile banking PIN, wallet password, or internet banking credentials, your bank or payment provider must let you reset or reactivate them free of charge.

No penalties, no “Rs. 200 service fee,” no waiting days for branch approval.
Nepal Rastra Bank wants people to trust digital systems, not fear making a mistake.

3.4 Financial Inclusion With USSD and NFC 

Not everyone owns a smartphone, and Nepal Rastra Bank knows digital progress must include everyone and not just urban users.

So, the RVPS also supports two technologies that make sure every Nepali can transact digitally:

1. USSD (Unstructured Supplementary Service Data)
   USSD is a simple text-based protocol that allows your basic phone to communicate directly with your bank's computer over the network, without needing the internet. It works perfectly even on those old-school feature phones with no internet required. It lets users transact up to Rs. 5,000 at a time, with a daily cap of Rs. 10,000. But will people actually trust it? Teaching a text-based system to someone who isn’t tech-savvy takes patience, and the lack of a visual screen can definitely make people nervous about where their money is going. Building that trust is key to making USSD successful.
2. NFC (Near Field Communication)
   You’ve probably seen this in action. Maybe you shopped at Bhatbhateni, handed your card over, and felt a tiny moment of panic when they simply tapped it on the machine and you were good to go? No PIN required? Well, that's NFC at play. It enables quick, contactless card payments. The NRB has put a cap of Rs. 5,000 per transaction on this. Sure, it’s super easy; just tap and go, but what if you lose your card somewhere? Someone could potentially misuse it for several small purchases before you realize it's gone.

4. Provisions Under the Special Payment Services for Business Purposes

Once you move beyond personal payments, the scale, and responsibility changes. A business might need to send hundreds of salary transfers at once, pay vendors across multiple banks, or deposit taxes and government fees.

To make this smooth, Nepal Rastra Bank has laid out specific provisions under the category of Special Payment Services for Business Purposes.

These provisions ensure that institutions involved in commercial transactions can operate efficiently, but within a controlled, transparent framework.

Let’s unpack what these rules say

4.1 Separate Transaction Limits for Business Instruments

Under this provision, Nepal Rastra Bank allows institutions engaged in business activities to receive separate, higher transaction limits than what ordinary users get under the Retail Value Payment System (RVPS).

This applies to digital instruments such as Corporate Pay, and Inter-Bank Fund Transfer for Business. In simple terms: businesses aren’t bound by the same Rs. 3 lakh daily cap that applies to individuals using mobile banking or wallets. Their limits can be customized (higher or different) depending on their operational needs and the bank’s internal assessment.

This flexibility is critical. By giving financial institutions the authority to assign these “business-grade” limits, Nepal Rastra Bank ensures that large transactions can move efficiently, but still remain traceable through licensed systems.

4.2 Permitted Payment Categories

The notice clearly outlines what kinds of payments these instruments can be used for.
Businesses can use Corporate Pay or Inter-Bank Fund Transfer for:

1. Business-Related Transactions
   Payments to suppliers, service providers, or trade partners; essentially any transfer linked to commercial activity.
2. Employee Salaries and Allowances
   Payroll disbursement becomes faster and more transparent. Each payment leaves a digital trail, which helps both accounting and compliance teams.
3. Government-Related Payments
   Companies can directly pay taxes, registration fees, or other official dues through their corporate digital channels; no cheques, no physical paperwork.

By defining these categories, Nepal Rastra Bank sets the record straight; Corporate digital tools are meant for legitimate, documented business transactions and not for personal use or informal fund transfers.

4.3 Real-Time and Scheduled Settlements

Under NRB’s guidelines, transactions made through these business instruments can be completed in two ways:

1. In Real Time, where money moves instantly from one account to another,
2. Or, as per a settlement cycle determined by the system operator, meaning payments can be grouped and processed at specific intervals (for example, payroll batches at the end of each day).

This dual option matters because not all business payments are urgent. Salary runs, for instance, can follow a fixed schedule, while supplier payments may need real-time execution. By giving this flexibility, Nepal Rastra Bank allows systems like Corporate Pay to optimize for both speed and efficiency.

5. Provisions Under the Large Value Payment System (LVPS)

When payments start crossing the two-lakh mark, they enter a different world; one where every second and every rupee matters. LVPS is the zone for transactions like corporate settlements, government payments, inter-bank transfers, and institutional fund movements.

Let’s break down what the official provisions actually say.

5.1 Threshold for Large-Value Payments

According to Nepal Rastra Bank, any payment of Rs. 200,000 or above must be routed through the Real Time Gross Settlement (RTGS) system. That number; Rs. 2 lakh, serves as a dividing line between ordinary payments and high-value transactions. Once you cross it, your transfer is processed through a system designed for precision, not volume. The key point here is, every high-value payment made through RTGS settles in real time, meaning funds leave one account and reach another instantly, with no waiting for batch processing or end-of-day reconciliation.

For businesses, this ensures immediate confirmation and reduces settlement risk and for banks, it preserves liquidity accuracy throughout the day.

5.2 Official Operating Hours

Nepal Rastra Bank operates the RTGS system under fixed daily hours:

Sunday – Thursday: 8:30 a.m. to 7:30 p.m.

Friday: 8:30 a.m. to 2:45 p.m.

These timings align with the working hours of most financial institutions, allowing both corporate users and banks to complete large settlements before the day’s official close. Outside these hours, transactions are queued for the next operating window, making sure the system remains stable and controlled.

5.3 Accessing the RTGS Service

The process is straightforward: Customers who need to make large-value payments can visit their respective banks or financial institutions to initiate RTGS transactions. Banks act as the front line; as in, they verify the request, confirm available balance, and process the transfer through NRB’s centralized RTGS platform. This requirement makes sure that high-value transactions are double-checked before execution, reducing the risk of errors or unauthorized transfers.

For frequent corporate users, banks may also offer RTGS access through secured online banking modules, but every transfer still follows NRB’s verification protocol.

5.4 Non-Real-Time Settlements via IPS

Not every large-value transaction needs to happen instantly. Some are scheduled or processed in batches, like periodic settlements between institutions. For those cases, Nepal Rastra Bank specifies that non-real-time large-value payments should be carried out through the Inter-Bank Payment System (IPS).

In simple terms:

• RTGS = real-time, one-by-one, instant settlement.
• IPS = non-real-time, grouped, cost-efficient settlement.

This dual-channel structure helps NRB manage liquidity efficiently across the banking network with urgent transfers moving instantly, while routine settlements clear in batches to save resources.

Final Thoughts

So, why does all this matter? Nepal’s huge leap into the world of digital money works so well because it’s built on one thing: rock-solid clarity.

Nepal Rastra Bank has laid down clear tracks for every kind of money movement.

For us, the everyday rules of the RVPS are like digital guardrails. They keep things quick and super easy, but they’re always there to stop any major digital blunders. For companies, the robust structure of the Special Payment Services means they can handle massive payrolls and vendor invoices with higher limits and complete confidence, knowing exactly what to expect. And up in the big leagues, the LVPS ensures that those giant transactions; anything over 200,000 rupees, clear instantly and securely, keeping the whole financial system rock steady.

NRB has basically handed us the definitive instruction manual for digital transactions in Nepal. They've made sure that whether you're a small shop owner scanning a QR code or a corporate CFO, your payments are predictable, secure, and completely fair.

The final takeaway is simple: Money in Nepal moves fast now, but it’s always zooming forward with the safety and confidence that only clear rules can provide.