{
 "jurisdiction_id": "NP",
 "jurisdiction": "Nepal",
 "url": "https://payments.gi/jurisdictions/nepal/",
 "generator": "render_jid v13.3.0",
 "date_modified": "2026-09-11",
 "schema_version": "world-payments-v1",
 "counts": {
  "modules": 14,
  "sourced_findings": 76,
  "source_register": 119
 },
 "modules": [
  {
   "code": "W1a",
   "name": "Licensing, Authorisation & Market Access",
   "confidence": "Confirmed",
   "moved_this_cycle": true,
   "url": "https://payments.gi/jurisdictions/nepal/#w1a-licensing-authorisation-market-access",
   "standing_position": "Payment service providers (PSPs) and payment system operators (PSOs) in Nepal are licensed and supervised by Nepal Rastra Bank (NRB) under the Payment and Settlement Act 2019 and the Unified Directive on Payment Systems, 2025 (15th amendment). A June 2025 amendment introduced enhanced beneficial-ownership disclosure for anyone owning, controlling or participating in a licensed PSP; a July 2025 amendment mandated National Identity Card verification for opening/updating digital wallets, effective by 17 October 2026.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "primary statute",
     "source": "https://www.nrb.org.np/contents/uploads/2025/09/Frameowrk-for-Identifying-Systemically-Important-Payment-Systems_01-09-2025-1.pdf",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/09/Frameowrk-for-Identifying-Systemically-Important-Payment-Systems_01-09-2025-1.pdf",
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "licensing policy",
     "source": "https://pradhanlaw.com/publications/licensing-policy-for-institutions-that-perform-payment-related-work-2079-2023-ad",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "2",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "licensing policy",
     "source": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "supervisory report",
     "source": "https://www.nrb.org.np/contents/uploads/2025/02/2024-Report_BOK-KPP.pdf",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "draft amendment (pending/horizon)",
     "source": "https://ekantipur.com/business/2026/03/01/en/draft-amendment-to-the-nepal-rastra-bank-act-proposal-to-include-payment-system-operators-and-service-providers-in-financial-institutions-41-52.html",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "licensing procedure",
     "source": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "supervisory directive",
     "source": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_url": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W1b",
   "name": "Conduct, Safeguarding & Financial Promotions",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w1b-conduct-safeguarding-financial-promotions",
   "standing_position": "NRB issued a directive under Payment and Settlement Act 2019 s.45 requiring retroactive collection of shareholder/director/senior-management background and beneficial-ownership information for all licensed payment institutions; no corporate insider is exempt.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "safeguarding mechanism",
     "source": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_url": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "conduct circular",
     "source": "https://techlekh.com/digital-payment-providers-interoperability-nepal/",
     "source_url": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "unified directive",
     "source": "https://ictframe.com/nrbs-notice-on-eps/",
     "source_url": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "conduct/consumer protection procedure",
     "source": "https://jkeconomicassociation.com/consumer-protection-in-the-digital-marketplace-legal-frameworks-courts-and-enforcement-practices/",
     "source_url": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "structural regulation",
     "source": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_url": "https://www.lawimperial.com/registration-of-payment-service-provider/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W2",
   "name": "Stablecoins & Digital Money",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w2-stablecoins-digital-money",
   "standing_position": "Nepal maintains a comprehensive, judicially-upheld ban on all private cryptocurrency and stablecoin activity, grounded in the Foreign Exchange (Regulation) Act 1962/2019 and NRB Act 2058 Sections 4, 5(d) and 113. NRB is separately exploring a CBDC but has no live retail pilot as of mid-2026; a CBDC would not legalise private crypto.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "statutory ban",
     "source": "https://lawfirmnepal.com.np/publications/cryptocurrency-in-nepal",
     "source_url": "https://lawfirmnepal.com.np/publications/cryptocurrency-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "statutory ban",
     "source": "https://notarynepal.com/blog/legal-provisions-on-cryptocurrency-in-nepal",
     "source_url": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "consolidated regulatory notice",
     "source": "https://lawbhandari.com/publication/crypto-currency-law-in-nepal-prosecution-of-crypto-cases",
     "source_url": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "CBDC exploration (pending/horizon)",
     "source": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_url": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "enforcement/penalty regime",
     "source": "https://notarynepal.com/blog/punishment-for-cryptocurrency-in-nepal",
     "source_url": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W3",
   "name": "Operational Resilience & Critical Infrastructure",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w3-operational-resilience-critical-infrastructure",
   "standing_position": "NRB operates the RTGS system under the Payment System Related Unified Directives, 2081 and has published a Framework for Identifying Systemically Important Payment Systems (SIPS), formalising a systemic-risk-based oversight tier aligned to PFMI-style standards.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "cyber resilience guidelines",
     "source": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_url": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "SIPS framework",
     "source": "https://kathmandupost.com/money/2025/09/03/nepal-rastra-bank-rolls-out-framework-to-identify-systemically-important-payment-systems",
     "source_url": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "supervisory enforcement",
     "source": "https://www.fiscalnepal.com/2024/02/19/15663/central-bank-strengthens-cyber-resilience-guidelines-amid-rising-cybercrime-concerns/",
     "source_url": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "AI/operational resilience guidelines",
     "source": "https://www.nrb.org.np/contents/uploads/2025/12/AI-Guidelines.pdf",
     "source_url": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "supervisory practice",
     "source": "https://www.nrb.org.np/contents/uploads/2025/02/2024-Report_BOK-KPP.pdf",
     "source_url": "https://n1r4j.medium.com/key-highlights-of-nepal-rastra-banks-new-cyber-resilience-guidelines-4e50aefc3fd3",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W4",
   "name": "Scheme & Network Compliance",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w4-scheme-network-compliance",
   "standing_position": "Nepal runs a multi-scheme, closed-loop payments landscape (Fonepay, SCT, Nepal Payment Solutions, NEPS/NCHL, plus international VISA/Mastercard/UnionPay as licensed PSOs) that NRB is consolidating via the National Payment Switch (NPS) and mandatory NepalQR (EMVCo-based) standardisation, with a domestic NEPALPAY card scheme gaining international acceptance through Discover Financial Services.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "scheme technical standard",
     "source": "https://www.nrb.org.np/psd/nepalqr-standardization-framework-and-guidelines/",
     "source_url": "https://www.nrb.org.np/psd/nepalqr-standardization-framework-and-guidelines/",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "national switch infrastructure",
     "source": "https://www.nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National-Payment-Ecosystem-Master-Reference-Document-2025.pdf",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National-Payment-Ecosystem-Master-Reference-Document-2025.pdf",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "scheme operating rules",
     "source": "https://nchl.com.np/wp-content/uploads/2023/02/1.pdf",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National-Payment-Ecosystem-Master-Reference-Document-2025.pdf",
     "source_tier": "2",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "unified directive",
     "source": "https://estartupnepal.com/article/electronic-payment-system-in-nepal",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National-Payment-Ecosystem-Master-Reference-Document-2025.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "interoperability circular",
     "source": "https://techlekh.com/digital-payment-providers-interoperability-nepal/",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/10/National-Payment-Switch-NPS-and-the-National-Payment-Ecosystem-Master-Reference-Document-2025.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W5",
   "name": "Payment Corridor Dynamics",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w5-payment-corridor-dynamics",
   "standing_position": "Remittances (~a quarter of GDP) dominate Nepal's cross-border payment dynamics, concentrated in Gulf/GCC, India and Malaysia corridors. A landmark structural shift occurred in June 2026 with the live launch of a direct UPI(India)-NPI(Nepal) real-time linkage via NCHL and NPCI International (go-live 6 June 2026), alongside an earlier Fonepay-NIPL UPI merchant-QR acceptance deal.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "corridor data",
     "source": "https://www.daayitwa.org/storage/archives/1704262558.pdf",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "corridor cost data",
     "source": "https://migrantmoney.uncdf.org/wp-content/uploads/2023/02/Nepal-Country-Assessments.pdf",
     "source_url": "https://www.daayitwa.org/storage/archives/1704262558.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "cross-border rail linkage",
     "source": "https://www.medianama.com/2026/06/223-india-nepal-upi-payments-live/",
     "source_url": "https://www.daayitwa.org/storage/archives/1704262558.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "cross-border merchant QR acceptance",
     "source": "https://fonepay.com/blogs/upi-in-nepal",
     "source_url": "https://www.daayitwa.org/storage/archives/1704262558.pdf",
     "source_tier": "2",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "corridor authorisation regime",
     "source": "https://www.companydartanepal.com/remittance-company-registration-in-nepal/",
     "source_url": "https://www.daayitwa.org/storage/archives/1704262558.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W6",
   "name": "Industry Structure & Commercial Dynamics",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w6-industry-structure-commercial-dynamics",
   "standing_position": "Nepal's fintech market is led by eSewa (~70% market share), with Khalti and IME Pay merging in 2025 to form IME Khalti in a bid to challenge that dominance, while Fonepay remains the dominant PSO/QR network backbone. Consolidation among BFIs (e.g., NCHL's acquisition of NEPS) and a regulatory shift permitting wallet-provider mergers are reshaping industry concentration.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "market structure",
     "source": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_url": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "market structure",
     "source": "https://www.simpaisa.com/blogs/nepals-digital-payment-boom-2025-market-landscape-and-the-road-ahead/",
     "source_url": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "market infrastructure consolidation",
     "source": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_url": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "market composition",
     "source": "https://tracxn.com/d/explore/fintech-startups-in-nepal/__qo4iDQXalIFuCA3IWeUyRKA1wbtlrLoEqyealiLmpzA",
     "source_url": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "market composition",
     "source": "https://english.onlinekhabar.com/fintech-innovations-transforming-nepals-banking-landscape.html",
     "source_url": "https://www.fiscalnepal.com/2025/03/20/19895/digital-wallet-leaders-ime-pay-and-khalti-merge-to-rival-esewa-begin-dda/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W7",
   "name": "Legal & Litigation",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w7-legal-litigation",
   "standing_position": "Payments-related litigation in Nepal centres on the 2022 Supreme Court dismissal of a PIL challenging NRB's crypto ban, active NRB enforcement actions (licence dismissals, account freezes) against non-compliant PSPs, and an emerging legal-ambiguity dispute over the draft NRB Act amendment that would reclassify PSPs/PSOs as \"financial institutions\" (with knock-on tax-rate implications).",
   "findings": [
    {
     "finding": null,
     "instrument_type": "landmark ruling",
     "source": "https://notarynepal.com/blog/legal-provisions-on-cryptocurrency-in-nepal",
     "source_url": "https://notarynepal.com/blog/legal-provisions-on-cryptocurrency-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "enforcement action",
     "source": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "regulatory/legislative dispute",
     "source": "https://ekantipur.com/business/2026/03/01/en/draft-amendment-to-the-nepal-rastra-bank-act-proposal-to-include-payment-system-operators-and-service-providers-in-financial-institutions-41-52.html",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "judicial institution / jurisprudence",
     "source": "https://jkeconomicassociation.com/consumer-protection-in-the-digital-marketplace-legal-frameworks-courts-and-enforcement-practices/",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "enforcement/prosecution record",
     "source": "https://nepaldivorce.com/blog/anti-money-laundering-law-in-nepal",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/01/Payment-Oversight-Report-2023-24.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W8",
   "name": "Merchant Acquiring & Risk",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w8-merchant-acquiring-risk",
   "standing_position": "Merchant acquiring runs through NRB-licensed PSPs/PSOs under the NepalQR framework, with acquirers responsible for merchant enrolment, ID assignment and settlement; a 2026 E-commerce Act mandates use of NRB-licensed payment gateways, and a zero-additional-fee rule on domestic card/QR/wallet transactions structurally shapes acquiring economics for the roughly 1.2 million QR-accepting merchants.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "acquiring/merchant onboarding rule",
     "source": "https://www.nrb.org.np/psd/consultative-review-document-for-qr-code-guidelines-and-framework-and-qr-code-specifications/",
     "source_url": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "merchant/e-commerce regulation",
     "source": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_url": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "merchant discount rate (MDR) rule",
     "source": "https://nchl.com.np/wp-content/uploads/2023/02/1.pdf",
     "source_url": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_tier": "2",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "merchant fee rule",
     "source": "https://ictframe.com/nrbs-notice-on-eps/",
     "source_url": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "merchant ecosystem scale",
     "source": "https://corporatenp.com/post/fintech-psp-registration-nepal",
     "source_url": "https://www.karsansar.com/e-commerce-act-2081-nepal-guide/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W9",
   "name": "Product Innovation & Market Development",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w9-product-innovation-market-development",
   "standing_position": "Nepal's domestic retail-payments infrastructure runs on NRB's RTGS system alongside private fast-payment operators (fonepay, Nepal Payment Solution's InstaFund) and NCHL clearing. A new NRB directive restricting cash transactions of NPR500,000+ to banking-channel settlement is actively pushing volume toward these digital/account-based rails, and manual cheque clearing is now confined to a narrow high-value band (NPR300m+).",
   "findings": [
    {
     "finding": null,
     "instrument_type": "regulatory sandbox",
     "source": "https://english.onlinekhabar.com/fintech-innovations-transforming-nepals-banking-landscape.html",
     "source_url": "https://fonepay.com/blogs/upi-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "financial inclusion product",
     "source": "https://estartupnepal.com/article/electronic-payment-system-in-nepal",
     "source_url": "https://fonepay.com/blogs/upi-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "strategy document",
     "source": "https://www.nrb.org.np/psd/retail-payment-strategy-2019/",
     "source_url": "https://fonepay.com/blogs/upi-in-nepal",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "cross-border product launch",
     "source": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_url": "https://fonepay.com/blogs/upi-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "CBDC exploration (pending/horizon)",
     "source": "https://sic.gov.lb/en/newsletter/nepal-central-bank-plans-cbdc-within-two-years-crypto-and-stablecoin-still-excluded-says",
     "source_url": "https://fonepay.com/blogs/upi-in-nepal",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W10",
   "name": "Consumer Protection & APP Fraud",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w10-consumer-protection-app-fraud",
   "standing_position": "Consumer protection rests on the general Consumer Protection Act, 2075 (2018) - enforced via a new Consumer Court (established March 2025) - layered with NRB's sector-specific Financial Consumer Protection and Grievance Management Procedure, 2020 and an NRB grievance portal (Gunaso). No dedicated mandatory APP-fraud reimbursement scheme (akin to the UK PSR model) was identified; cyber-enabled fraud (CEF) response instead runs through Nepal Police's Cyber Bureau and FIU-Nepal's STR/SAR analysis.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "consumer protection statute",
     "source": "https://commonlaw.com.np/publications/consumer-protection-law-in-nepal",
     "source_url": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "financial consumer protection regime",
     "source": "https://jkeconomicassociation.com/consumer-protection-in-the-digital-marketplace-legal-frameworks-courts-and-enforcement-practices/",
     "source_url": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "fraud typology / enforcement report",
     "source": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_url": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "gap analysis",
     "source": "https://www.nepallawyer.com/blog/social-media-scams-and-online-shopping-scams-in-nepal-lack-of-legislation-on-scams-in-nepal",
     "source_url": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "grievance channel",
     "source": "https://gunaso.nrb.org.np/complain",
     "source_url": "https://www.nrb.org.np/contents/uploads/2024/11/FIU-Nepal-Strategic-Analysis-Report-2024.pdf.pdf",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W11",
   "name": "AML/CFT & Financial Crime",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w11-aml-cft-financial-crime",
   "standing_position": "sentinel.position: Nepal was placed on the FATF grey list on 21 February 2025 following an APG mutual evaluation identifying strategic AML/CFT deficiencies. Nepal remains on the grey list as of the June 2026 FATF plenary update, with a 6-point action plan outstanding.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "sentinel.targeted_sanctions",
     "source": "https://www.nrb.org.np/departments/mlpsd/",
     "source_url": "https://www.nrb.org.np/contents/uploads/2025/10/STR.SAR-Guidelines-Updated-July-2025.pdf",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": "Nepal's AML/CFT regime rests on the Asset (Money) Laundering Prevention Act (ALPA, amended 2011-2019), the 2013 Proceeds and Instruments of Crime Act, and DMLI as sole ML/TF investigative authority under NRB supervision. FATF grey-listed since February 2025; EU and UK both list Nepal as a high-risk third country. Major vulnerabilities persist in hundi/MVTS, cooperatives, casinos, real estate, beneficial ownership verification, and virtual-asset enforcement despite a formal VASP prohibition.",
     "instrument_type": "assessment",
     "source": "FIM (sentinel.gi) per-JID baseline profile — Nepal",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Enforcement: Department of Money Laundering Investigation (DMLI) — Former Finance Minister and UML vice-chair (five-time finance minister)",
     "instrument_type": "enforcement_action",
     "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-005)",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": "Sanctions: OFSI listing",
     "instrument_type": "sanctions_change",
     "source": "FIM (sentinel.gi) sanctions_change_register (issue FIM-BASE-SANC-002)",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": "Enforcement: Department of Money Laundering Investigation (DMLI) / Nepal Police Central Investigation Bureau — Deepak Bhatta, chair of Infinity Holdings",
     "instrument_type": "enforcement_action",
     "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-001)",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": "Enforcement: Department of Money Laundering Investigation (DMLI) — Deepak Khadka, former Energy Minister",
     "instrument_type": "enforcement_action",
     "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-004)",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": "Gap: political-constraint",
     "instrument_type": "gap",
     "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-003)",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Gap: regulatory-failure",
     "instrument_type": "gap",
     "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-005)",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Gap: legal-gap",
     "instrument_type": "gap",
     "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-001)",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W12",
   "name": "Correspondent Banking, Settlement & Access",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/nepal/#w12-correspondent-banking-settlement-access",
   "standing_position": "Nepali law prohibits foreign bank branch operation, so all cross-border settlement runs through correspondent banking arrangements maintained by Nepal's ~20 commercial banks (several of which are foreign joint-venture banks) with major international banks via SWIFT. The February 2025 FATF grey-listing has intensified de-risking pressure, with heightened due-diligence and documentation requirements on correspondent and trade-finance relationships flagged as an immediate risk.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "correspondent banking structure",
     "source": "https://www.trade.gov/country-commercial-guides/nepal-trade-financing",
     "source_url": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_tier": "1",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "de-risking pressure",
     "source": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_url": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "correspondent banking research/risk study",
     "source": "https://www.nepjol.info/index.php/JAAR/article/view/90349",
     "source_url": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "de-risking cross-country evidence",
     "source": "https://www.cgdev.org/sites/default/files/policy-responses-de-risking.pdf",
     "source_url": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_tier": "2",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "correspondent bank register",
     "source": "https://www.privacyshield.gov/ps/article?id=Nepal-US-Banks",
     "source_url": "https://risk.lexisnexis.com/insights-resources/article/aml-terror-financing-risks-as-nepal-reenters-fatf-grey-list",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  },
  {
   "code": "W13",
   "name": "Commercial Intelligence & Fintech",
   "confidence": "Assessed",
   "moved_this_cycle": true,
   "url": "https://payments.gi/jurisdictions/nepal/#w13-commercial-intelligence-fintech",
   "standing_position": "The trailing-12-month window (July 2025-July 2026) is dominated by the live cross-border UPI(India)-NPI(Nepal) rail launch (June 2026) via NIPL/NCHL and Fonepay, continuing consolidation momentum from the 2025 IME Pay-Khalti wallet merger, and Nepal's continued FATF grey-list status through the June 2026 plenary - all with significant knock-on commercial implications for payments-sector investment and market structure.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "commercial_event",
     "source": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "commercial_event",
     "source": "https://www.medianama.com/2026/06/223-india-nepal-upi-payments-live/",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "commercial_event",
     "source": "https://www.newkerala.com/news/a/nepal-remains-fatf-grey-list-as-global-watchdog-462.htm",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "commercial_event",
     "source": "https://ekantipur.com/business/2026/03/01/en/draft-amendment-to-the-nepal-rastra-bank-act-proposal-to-include-payment-system-operators-and-service-providers-in-financial-institutions-41-52.html",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    },
    {
     "finding": null,
     "instrument_type": "commercial_event",
     "source": "https://thefintechtimes.com/how-fintech-is-growing-in-nepal-in-2026/",
     "source_url": "https://techobserver.in/news/egov/india-nepal-upi-npi-cross-border-payments-launch-325089/",
     "source_tier": "3",
     "retrieved_at": "2026-07-04"
    }
   ]
  }
 ]
}