NCHL’s total transaction crosses 20 Millions in FY2076-77; registers historic Rs 9.69 Trillion in settlement value

Nepal Clearing House Ltd. (NCHL) has processed total of 20.6 million number of transactions during the fiscal year ending 31^st Asar 2077, which is 22.2% higher than the last year. The total settlement value of the transaction remained at NRs 9.69 Trillion, US$ 322 Million, EUR 238 Million and GBP 171 Million, from various systems during the fiscal year 2076/77. With this, the annualized growth in transaction value and volume from the payment systems operated by NCHL since 2067/68 till date has reached over 58.85%, which has remained as the major contribution of NCHL in the digital payments value chain within Nepal. The daily average transaction in NCHL’s payment system for the fiscal year was 77,115 equivalent of NRs 36.2 Billion in settlement.

NCHL has been operating multiple national clearing and settlement systems including NCHL-ECC, NCHL-IPS and connectIPS e-Payment. Additionally, it has been facilitating the industry with its channel platforms including National Payments Interface (NPI) and connectRTGS. NPI is a consolidated interface for interoperability between the BFIs, PSPs/PSOs and enabling service providers for integration with the underlying payment systems, part of which is also being used by Government of Nepal for processing of its payout (G2B, G2P, G2G) and revenue collection (P2G, B2G) related transactions. NCHL supported GoN during the fiscal year in processing its NRs 219 Billion equivalent of payout (Off-Us only) and NRs 3.12 Billion equivalent of revenue collection.

During the Covid situation and since the lockdown was started from 11^th Chaitra 2076, NCHL’s payment systems have played a key role in supporting the banking industry and their customers for initiating and processing non-cash transactions, with total of over 52.5 lakh during the lockdown period only. NCHL-ECC and NCHL-IPS payment systems require the customers to directly or indirectly reach their respective bank branches. However, connectIPS e-Payment system allows the BFI’s customers to initiate their transactions from alternate channels. So it has seen noticeable transaction growth from approximately daily transaction of NRs 1 Billion prior to Covid situation to NRs 2.5 Billion by the end of Asar. NCHL had waived majority of the transaction fees and charges during the Covid situation in NCHL-ECC, NCHL-IPS and connectIPS until 31^st Asar 2077 and to leverage on the momentum gained in digital payments, it has also massively reduced the transaction fees and charges.

NCHL has been established by Nepal Rastra Bank and almost all the banks & financial institutions with objectives to establishing multiple national payment systems in Nepal. It has been licensed as payment system operator by NRB and has been providing shared infrastructures for the industry. It has more than 102 members within its network including BFIs, PSPs/PSOs, remittance companies, insurance, semi-government institutions, NEPSE, EPF, CIT, SSF, capital market stakeholders and others.