connectIPS daily transaction crosses NRs 2 Billion

 Kathmandu, june 16.  Nepal Clearing House Ltd. (NCHL)’s connectIPS e-Payment System has crossed,for the first time, daily transaction value of over NRs2 billion since 8th June, 2020. This is a landmark reached for a real-time retail payment system implemented by NCHL and sinceits operations from Baisakh 2075.

The month to month connectIPS transaction has grown by 75% and 186% in terms of number and value respectively, during the three months of lockdown. The monthly total transaction value in connectIPS e-payment system during the last months of Chaitra, Baishak and Jesthahave remained at NRs 13.8 B, NRs 24 B and NRs 39.5 B respectively.

It is also noteworthy that 64% of the transactions were initiated through National Payments Interface (NPI), which is a consolidated APIs for allowing the institutions to initiate their transactions through their alternate channels towardsconnectIPS or NCHL-IPS or other systems.Apart from the available alternate channels of mobile app, web and bank branches of connectIPS e-payment system, NPI has played an important role to increase the transactions in connectIPS. NPI acts as a local domestic payments rail for integration and interoperability of the alternate channels (mobile, internet, corporate banking) of BFIs, PSPs/PSOs, Government entities and other large institutions.

It is being used by 6 mobile wallets (other 8 on pipeline), almost all insurance companies, remittance companies, NEPSE, stock brokers, social security fund, employee provident fund, and almost all BFIs.

connectIPS platform has enrollment of over 58 BFIs and allows the bank customers to initiate fund transfer based on bank account of any beneficiary or mobile number of other users. Such fund transfer can also be done easily from the bank’s own mobile or internet banking, which does not require separate enrollment in the connectIPS.

Some of the other paymentsavailable in the platform are Government revenue payment, CIT loan repayment, Social Security Fund payment, credit card bill payments, mobile wallet top-up, capital market related payments, e-commerce payments, school/colleges, insurance payments and similar.connectIPS e-Payment has been implemented as a faster payment system in Nepal having multiple channels of mobile, web, gateway and APIs provided to the member banks & financial institutions, payment service providers (PSPs), payment system operators (PSOs) and other large entities. And all transactions are processed directly from the bank accounts.

NCHLcurrently handles daily average transaction of over one lakh equivalent to daily settlement value of NRs 40+ B, through all its payment systems. However, unlike other payment systems, connectIPS is a complete digital payment platform that allows the bank customers to initiate and process transactions from alternate channels. And the increase in the transactions in connectIPS even during the lockdown situation, which has gone down for other systems, is a strong indication of the acceptability of digital payments or at least towards such direction. This is expected to generate much needed momentum for digital payments after the lockdown.

NCHL, a company promoted by Nepal Rastra Bank and Banks & Financial Institutions, has been operating NCHL-ECC, NCHL-IPS, connectIPS e-Payment, connectRTGS and National Payments Interface(NPI).