How to Use UPI in Nepal and Bhutan

For Indian travellers heading to Nepal or Bhutan, carrying cash has traditionally been the norm. That is changing rapidly. Both Nepal and Bhutan have enabled UPI-based payments for Indian visitors, making it possible to pay at participating merchants using the same UPI apps used back home. Here is everything you need to know before you travel.

UPI in Nepal: what is available

Nepal was one of the first countries to formally integrate with India's UPI infrastructure. Indian travellers visiting Nepal can use UPI to make payments at merchant outlets that display the UPI QR code or are affiliated with the cross-border payment network. The integration is enabled through a bilateral arrangement between NPCI International and the relevant payment authorities in Nepal. Payments are settled at prevailing exchange rates, and the transaction is reflected in your Indian bank account in Indian rupees.

It is important to note that UPI in Nepal is currently intended for person-to-merchant payments at participating outlets. Not all merchants in Nepal may accept UPI, so it is advisable to carry some Nepali rupees as a backup, particularly in smaller towns or rural areas.

UPI in Bhutan: how it works

Bhutan has a close financial relationship with India, and UPI acceptance has been established through a collaboration between NPCI International and Bhutan's payment network. Indian travellers can scan merchant QR codes in Bhutan and complete payments directly from their UPI-linked Indian bank account. The experience is largely similar to using UPI in India — scan, authenticate, and pay.

Bhutan's tourism sector has been relatively quick to adopt UPI at popular merchant locations, hotels, and tourist sites. As with Nepal, coverage may vary outside major towns, and carrying local currency remains a practical precaution.

How to use UPI abroad as an Indian traveller

To use UPI in Nepal or Bhutan, your UPI app and linked bank account must be active and functioning. No special activation is typically required beyond ensuring your mobile number and UPI ID remain valid. When at a merchant, open your preferred UPI app, scan the merchant's QR code, enter the amount, and authenticate the transaction as you normally would. The conversion from Indian rupees to local currency is handled automatically at the time of settlement.

Some banks may have daily limits on international UPI transactions, so it is worth checking your bank's terms before travelling.

Cross-border payments: the broader picture

The expansion of UPI to Nepal and Bhutan is part of a larger initiative by NPCI International to extend India's real-time payment infrastructure to other countries. This initiative is significant not just for travellers but also for the millions of people with financial connections across these borders. The goal is to make cross-border payments as seamless and low-cost as domestic UPI transactions.

Stashfin and UPI

Stashfin supports UPI payments in compliance with NPCI guidelines. While cross-border UPI functionality depends on NPCI International's bilateral arrangements and your bank's participation, Stashfin ensures that your domestic UPI experience remains smooth and secure as the broader ecosystem evolves.

UPI transactions are governed by NPCI guidelines. Stashfin is an RBI-registered NBFC. Please ensure transaction details are correct before confirming payment.