India and Nepal are set to sign an agreement for cross-border digital payment using e-wallets in a move to boost trade and tourism between the two nations. The agreement is expected to be signed during Prime Minister Pushpa Kamal Dahal’s visit to India before mid-April. This article explores the significance of this agreement and its potential impact on the trade and tourism sectors of both countries.
Agreement Awaiting Signatures
According to reports in the Kathmandu Post, the two countries have already drafted an agreement for this purpose, and the document is awaiting signatures from both countries’ officials. This move is aimed at eliminating currency exchange hassles between the two countries.
Boosting Nepal’s Tourism Industry
New Delhi’s Ambassador to Kathmandu, Naveen Srivastava, announced that the proposed Indian digital payment service in Nepal would help boost Nepal’s travel and tourism industry. An overland Indian visitors’ survey conducted before the Covid-19 pandemic showed that the average length of stay of Indian tourists coming overland was 5.8 days, with an average expenditure of Rs 11,310 per visitor.
Advantages of Travelling to Nepal
According to reports, one of the benefits of visiting Nepal is that one does not need to change money, and the launch of digital payment services will eliminate the hassle of carrying large amounts of cash for Indian tourists and businessmen in Nepal. This move is expected to increase the number of Indian tourists visiting Nepal and boost the country’s economy.
Cross-Border Payment System
Last May, payment system operator Gateway Payment Service began a cross-border payment system for the first time in Nepal, based on interoperable and mobile-first technology. The National Payment Corporation of India and its international arm, International Payments, have joined hands with Gateway Payment Service and Manam Infotech to deploy a unified payment interface in Nepal.
The Impact of the Agreement
The launch of the cross-border digital payment system is expected to be a significant development in the trade and tourism sectors of Nepal and India. The elimination of currency exchange hassles is expected to attract more tourists and businessmen, leading to increased trade between the two countries.
With the use of digital payment systems, Indian tourists can conveniently pay for their expenses in Nepal using their e-wallets without the need to exchange currency, making their transactions faster, safer, and more convenient.
Furthermore, this agreement is expected to strengthen the economic ties between India and Nepal. The increased ease of doing business and trade between the two countries is likely to have a positive impact on the economies of both countries, and it will also encourage more investments and partnerships between Indian and Nepalese businesses.
Conclusion
The cross-border digital payment agreement between Nepal and India is a significant development that will benefit both countries in many ways. By eliminating the currency exchange hassle, it will make it easier for Indian tourists and businessmen to visit Nepal and engage in various transactions, and this is likely to boost the tourism and trade sectors of Nepal.
The agreement will also strengthen the economic ties between the two countries and encourage more investments and partnerships, which will be beneficial to both nations in the long run.
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