NCHL starts joint operation after acquiring NePS

KATHMANDU, JUNE 4: Nepal Clearing House Ltd. (NCHL)  has started its joint operation after acquiring Nepal Electronic Payment Systems Ltd. (NePS). The announcement regarding this was made during a formal event held yesterday in the capital. This is the first such consolidation of payment system operators in Nepal, who have come together to collaborate for a digital ecosystem.

Governor Maha Prasad Adhikari was the Chief Guest of the event which was participated in by various dignitaries from Nepal Rastra Bank, bank &financial institutions, payment system operators, payment service providers, and others

NCHL and NePS are both promoted and represented by the banks & financial institutions, hence no changes in the Board of Directors after the acquisition. The valuation was done as per the provisions of Payment & Settlement Bylaw and carried out by a duly authorized DDA Auditor, based on which acquisition was executed at the swap ratio of 1:0.28 between NePS and NCHL.

NCHL and NePS have been working in the payments industry with a vision to improve the digital payments ecosystem in Nepal. NCHL has been operating national payment systems related to non-card-based infrastructures for the last 15 years, whereas, NePS has been providing card processing services for the last 11 years.

The consolidation of NePS with NCHL will provide access to both card and non-card payment infrastructures and is expected to support faster rollout and acceptability of the National Payment Switch (NPS-NCS and NEPALPAY scheme).

The existing card services related to issuing, acquiring, card & personalization, management & services of earlier NePS will be continued by NCHL as ‘EFT Card Services’. “The infrastructure will be further enhanced to drive the issuing and acquiring of the NEPALPAY domestic card scheme and will service existing and other participating members,” states a press release issued by the company.

The consolidated paid-up capital of over Rs 1.07 Billion with a total reserve of Rs. 1.44 Billion will help to enhance infrastructures, improve risk & security controls, invest in innovations and improve service quality, according to the release. The combined transaction volume after the consolidation is close to Rs 130.50 million, equivalent to a transaction value of Rs 11.30 Trillion, till the end of Chaitra 2080.