Nepal Rastra Bank (NRB) may regulate these four payment service systems
Insurance Khabar
Published Date : Saturday September 6, 2025 9:10 am
Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) is preparing to increase regulation on service providers operating payment systems by issuing an outline on identifying systemically important payment systems (SIPS).
According to the outline released by the central bank on Monday, payment systems that fall under the prescribed five criteria will be identified as important payment systems for operators.
Management of large and time-sensitive payments: Time sensitive and large-money transactions management payment system.
Essentials for the country’s financial markets: The only or major payment system that is extremely important and decisive for the country’s financial market infrastructure.
Largest payment system in terms of total value of payments: Largest payment system in terms of total value of payments.
Large share of the market: System with more than one-third of the retail market share in terms of transaction value or more than two-thirds market share in terms of number of transactions.
High interrelationship with other payment systems:System deeply connected to other payment systems.
Moreover TAG_OPEN_div_37, The Nepal Rastra Bank reserves the right to identify and designate any system considered important for the financial system as an important payment system according to its definition and decision.
The purpose of assigning an important payment system is to manage the transition of risks associated with the operation of critical payment systems. Rastra Bank is going to include the entire financial market or consumer market under the scope of more stringent and effective regulation as the service of such a payment system is blocked.
According TAG_OPEN_div_33 to the criteria set by the central bank, three payment systems including Nepal Clearing House Limited (Connect IPS, Corporate Pay) in terms of time sensitive and large amount of money, PhonePe and Esewa in terms of maximum retail transactions, Khalti Digital Wallet in terms of large number of customers are likely to be included in this list.
The central bank said that the system of identification will enable payment systems to cope with potential obstacles while at the same time promoting innovation, financial inclusion and sustainable development.
This framework is designed to secure financial stability by identifying payment systems. It seeks to ensure the flexibility and continuity of critical payment systems during periods of financial stress or operational disruptions.
By focusing on risk identification, assessment, and mitigation, the framework aims to better understand how vulnerabilities arise and are transmitted within the system. It has since proposed mechanisms to effectively monitor, manage and control those risks.
Any disruption in operations can lead to systemic shocks with far-reaching consequences for financial stability. Poorly designed systems can increase risk, disrupt markets, and reduce confidence in the economy. Therefore, it is necessary to ensure their safety, efficiency and resilience for the sustainability of Nepal’s financial ecosystem.
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