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1. Who regulates NCHL-ECC?
Ans :

NCHL is regulated by Nepal Rastra Bank.

2. What is cheque truncation system in the context of electronic cheque clearing?
Ans :

In a cheque truncation system, physical movement of a cheque is truncated or stopped at some point in the clearing cycle, either at the level of the presenting bank or at the clearing house or at the paying bank.


In the context of NCHL-ECC System implemented in Nepal, cheque is truncated at the level of the presenting bank. In order words, the cheque does not physically travel to the clearing house or to the paying branch as it used to do in manual clearing process.

3. How does clearing take place and the cheques passed on?
Ans :

The presenting bank sends an electronic image of the cheque along with the relevant information like the MICR code line data, date of presentation, presenting bank, etc., to the clearing house. The clearing house forwards the images along with data files to the drawee/ paying bank. The paying bank branch takes the ‘Pay’ or ‘No-Pay’ decision based on the image of the cheque.


Physical cheques are truncated at the presenting bank (Bank of First Deposit) and so there is no need to move the instruments physically across branches.

4. How are the images captured?
Ans :

The electronic images and MICR data of cheques are captured using cheque scanners by the presenting bank. Prior to scanning by the presenting bank, all cheques are required to be stamped at the back (right hand side) of the cheque with the details of Presenting Bank Name, Branch Name and Date of Presentment. Each cheque is allowed to be presented twice in case of rejection in the first presentment.

5. How does the system ensure that cheque images are transferred securely between the banks and NCHL?
Ans :

Cheque images are transferred securely between the banks and NCHL through highly secured and state-of-the-art technology infrastructure which ensures authentication and security of the images being transferred. Audit logs at all levels are maintained for future references.

6. What care and precautions are to be taken by banks and their customers to ensure quality images and to avoid frauds?
Ans :

All cheques need to be image friendly. The customers should preferably use dark colored ink while drawing the instruments. Care should be exercised in the use of rubber stamps, so that it would not interfere with the material portions of the cheque. The date of the cheque, payee’s name, amount, signature and MICR line data are the basic features which are essential in a cheque. The use of rubber stamps, etc., should not overshadow the clear appearance of these basic features in the image. In order to ensure that all essential elements of a cheque are captured in the image during the scanning process, bank customers also need to exercise appropriate care in this regard.

7. How long does it take for a cheque to clear through NCHL-ECC System?
Ans :

All cheques are be cleared and settled on the same day (T+0) provided they are presented before the cut off time. Cheque presented after the cut off time are cleared and settled the following day (T+1).

8. What are the benefits of NCHL-ECC System to the customers of the banks/ FIs?
Ans :

a.    Faster clearing cycle.

b.    Beneficiary’s account gets credited the same day on which the paying account gets debited.

c.    Better customer service – Elongated customer window.

d.   Elimination of float available to cheque issuing bank customers, as they would tend to lose the advantage of utilizing the funds in their account even after issue of cheque till it reaches the counters of the paying bank branch.

e.     Clearing service by NCHL can be extended to the entire country with no geographical dependency.

9. Are there any changes in the process of cheque clearing for the customers?
Ans :

No, there is no change for the customers in the way they deposit the cheques and it is processed. But customers need to be aware of the new changes in the cheque standards & its security features, deposit & settlement times and charges that may be applicable.


10. Does the customer need to change the way I complete a cheque?
Ans :

There are no material changes as such but customers need to be aware regarding use of new design cheque:

i.      Make sure that you write the name of the payee and amount in words, clearly and correctly. Always fill out your new cheques using an ink pen or a ballpoint pen with black or dark blue permanent ink. Do not use a pencil, light coloured or fluorescent or non permanent ink to complete the cheque;

ii.     Write the date inside the “Date” box clearly in dark permanent ink.

iii.    Write or enter the amount inside the “Amount in Figures” box. Write the amount in figures as close to the left side of the box as possible to avoid any fraudulent alteration of the amount in figures;

iv.    If you print the amount in figures using a typewriter or a computer, print the currency symbol together with the amount in figures by the same device. If you use a computer to enter information on the cheque, please use a well maintained printer with permanent dark ink (black or dark blue) ribbons. If you use an ink jet printer or a laser printer, do not let the ink to penetrate the cheque paper and the printer, as it can adversely affect the security features;

v.     Do not write or sign on the space allocated for the MICR code line to ensure accurate reading of MICR printing. There should be no stamping (including company rubber stamp), perforations, stapling or any other intrusion in this area. Do not let your signature overlap the MICR Code line or the “Amount in Figures” box;

vi.    If you use a typewriter to write your instructions on the cheque, use ribbons of dark colours (black or dark blue). Do not use total transfer (correctable) ribbons.

vii.   Do not circle or underline any information on the cheque;

viii.  Do not use carbon or carbon-back ink for transfer to the second copy of the cheque.

ix.    Do not use facsimile signature, as it has a potential to disappear in the image of the cheque.

x.     Do not fold or mutilate the cheque as it can damage the data on the MICR line. Envelopes used for mailing cheques should be sufficiently large to enclose the cheque without folding.

11. What is the difference between Regular Session and Express Session?
Ans :

Express Sessions are special sessions of short duration for presentment, response from paying bank and NRB settlement. Express session has 1 hour of window for the cheque presentment and settlement happens within next 1 hour. There are currently 3 express clearing sessions on each working day except Friday where there is two express clearing session.


Regular Session is a one full day clearing cycle where cheques presented till 2:00 PM are settled on the same day at 3:30 PM. Cheques presented after 2:00 PM are settled on the next working day (Except Friday*) at 3:30 PM.


*Cheque presented after 2:00 PM on Thursday will be settled on the first working day of the following week at 3:30 PM.

12. What are the clearing session timings?
Ans :

Presentment for regular session (clearing of MICR encoded standard cheques) starts from 14:00 (T-1) and ends at 14:00 (T+0); Respond by paying bank ends at 15:00 (T+0); and settlement at NRB ends at 15:30 (T+0). Presentment for Express Session as given below:

1st Express Session: Presentment starts from 10:00 (T+0) and ends at 11:00(T+0); Respond by paying bank ends at 11:30 (T+0); and settlement at NRB ends at 12:00 (T+0).

2nd Express Session: Presentment starts from 11:00 (T+0) and ends at 12:00(T+0); Respond by paying bank ends at 12:30 (T+0); and settlement at NRB ends at 13:00 (T+0).

3rd Express Session: Presentment starts from 12:00 (T+0) and ends at 13:00(T+0); Respond by paying bank ends at 13:30 (T+0); and settlement at NRB ends at 14:00 (T+0).

Customers are required to consult their bank as they may set their own cut-off times for their operational arrangements.

13. Are the current cheques already issued by the Banks/FIs to the customers are supported by NCHL-ECC System?
Ans :

Only the MICR encoded cheques issued by the Banks/FIs will be supported by NCHL-ECC system. Old cheques (without MICR encoding) will not be supported by NCHL-ECC system. Request your bank for issuing MICR cheque in case you are still in possession of old non-MICR encoded cheques.

14. What is High Value Clearing Session?
Ans :

High value electronic cheque clearing is a special clearing session for presentment of high value cheques of above 200 Million to 300 Million in case of NPR cheques and above 2 Million to 3 Million in case of USD, GBP and EUR cheques. It is available from Sunday to Friday.

15. Whom should I contact for further information?
Ans :

Contact your bank for further information or visit our website

16. What is an Interbank Payment System (NCHL-IPS)?
Ans :

NCHL-IPS is a system to safely and efficiently tranfer funds from one account to any other account held at any of the participating member banks & financial institutions (BFIs). It supports account to account payments (Direct Credit) and collection (Direct Debit) related transactions. The underlying transaction products (purpose) of such payments or collections could be customer transfer, fees, insurance premium, loan installment, treasury, salary, pension, social security, dividend, IPO refunds, government payments, etc. 

17. Who regulates NCHL-IPS System?
Ans :

NCHL-IPS System is approved and regulated by Nepal Rastra Bank.

18. How does the NCHL-IPS system works?
Ans :

Customer requests or authorizes its bank (called as originating bank) to issue a credit instruction for payment to account(s) held at one or more of the member banks. The originating bank then initiates a direct credit transaction in the NCHL-IPS system and sends to the beneficiary bank (called as receiving bank). The receiving bank acknowledges the transaction and credits the beneficiary account after the settlement confirmation is received from the central bank. The final settlement takes place based on net position of the member banks at the settlement bank.


Similarly, customer request of debit instruction for collection from account(s) held at one or more of the member banks, the originating bank generates a debit instruction based on the mandate (consent between creditor and debtor). The receiving bank acknowledges the transaction and debits its customer account. The originating bank’s customer account will be credited after the settlement confirmation is received from the central bank.

19. What are the various products (purposes) supported by NCHL-IPS?
Ans :

The system supports over 160+ products (purposes). However, the relevant purposes of direct credit and direct debit will be available. Some of the purposes that will be initially introduced are Customer Transfer, Fees, Loan Installments, Interest, Insurance Premium, Remittance, Treasury, Government payments, Salary, Pension, Social Security, Dividend, IPO Refund, etc.


The transactions could be one-to-one or bulk transactions. It even supports standing order based payments (direct credit) and mandate based collections (direct debit). Supported currencies are NPR, USD, EUR and GBP, however foreign currency transaction may not be relevant for some of the purposes.


20. What are the benefits of using NCHL-IPS System?
Ans :
  • Alternative payment options other than cash and cheque.
  • Ease of payment and collection directly to/ from any bank account to any other bank account.
  • Supports standing instruction based payments and mandate based collection on pre-scheduled dates resulting into faster access to fund and improved cash flow.
  • Ease of account operation as single account can support multiple purposes from multiple BFIs.
21. What are Direct Credit and Direct Debit transactions?
Ans :

A transaction initiated by Debtor (payer) through its bank is a direct credit transaction. Creditor will be the receiver of such transaction. Customer has to instruct its bank for such direct credit transaction from its branch or through alternate channel. Examples of direct credit transactions are customer transfer, premium payment, bill/ fees payment, salary/ pension/ social security payments, etc.


A transaction initiated by Creditor (payee) through its bank is a direct debit transaction. Debtor will be the receiver of such transaction. An authorization, called as Mandate, has to be in place for initiating a direct debit transaction. Examples of direct debit transactions are premium collection, bill/ fees collection, installment collection, etc.


In both Direct Credit and Direct Debit, customers account will not be debited unless you have provided such instruction/ authorization to your bank. 

22. Can I give standing instruction to automatically initiate payment/collection related transactions directly from my bank account?
Ans :

Yes, Mandate can be setup for automatically initiating direct debit transactions. This will allow the beneficiary through its bank to collect agreed amount directly from your bank account on the specified date/ frequency as agreed between you and the beneficiary.

And Standing Orders can be setup for automatically initiating direct credit transactions. This will allow you through your bank to transfer fund directly to the beneficiary’s account on the specified date/ frequency.

23. From where can I avail the service of NCHL-IPS?
Ans :

The service is available through any of the banks and financial institutions who are enrolled within the NCHL-IPS system. So, you can avail the service from your bank or financial institution where your account is maintained. Refer to ‘NCHL-IPS Members’ section in our website to ensure that your bank is a member in the NCHL-IPS system.


And some of the banks may have integrated their core banking system with NCHL-IPS to provide alternate channels to their customers for initiating transactions.

24. How long does it take for clearing a transaction through NCHL-IPS system?
Ans :

All transactions received before 1:00 PM are cleared by the system on the same day (T+0). The transactions presented after the cut-off time are cleared and settlement the following day (T+1). Based on the purpose, the transactions could be cleared and settled intermittently. Refer to the NCHL-IPS Session Timings section for details.


Customers are required to consult their bank as they may set their own cut-off times for their operational arrangements.

25. What is the information that I need to provide to my bank for initiating a transaction?
Ans :

Basic information that will be required for initiating a transaction includes your bank account and the receiving party’s bank account details. The purpose of the transaction will also be required. However, your bank may request for additional information like some mandatory reference numbers and others that may be needed for completing the transaction.


Customers are required to consult their bank to know about such additional information required.

26. What is a Creditor Listing? Is there easier way of remembering the receiver bank account details?
Ans :

Bank account details of the beneficiary can be listed in the NCHL-IPS system as creditor listing corresponding to which a creditor code (short alpha numeric code) is assigned that can be used by the initiator of the transaction. The bank will not require to manually input the detail information about the beneficiary if the customer provides the creditor code. It will also be easier for the customer by just providing the creditor code rather than to remember the entire bank account details. Small corporates, schools/ colleges, cable operators, ISPs, etc. can enroll their bank account details and their clients can use for service payments from any of the member banks.


Service providers can consult their bank to avail creditor listing facility in NCHL-IPS system. Customers can ask their service provider if they have a creditor code for receiving payments through NCHL-IPS.

27. Are there any fees or charges for availing NCHL-IPS related services?
Ans :

There will be nominal transactional fee for availing this service levied either to the originator or the receiver of the transaction based on the purpose.


Customers can contact their bank for fees and charges related details. 

28. Who should be contacted for further information?
Ans :

Contact you bank for further information or visit our website

29. What is a connectIPS e-Payment System?
Ans :

connectIPS e-Payment System is a single payment platform for payment processing, fund transfer and biller payments, directly from/to the bank accounts using alternate channels of web and mobile. The user will be able to send/receive payments up to the specified limit directly from//to the bank accounts without having to park their fund at an intermediary system.

30. Who operates and regulates the connectIPS System?
Ans :

connectIPS e-Payment System is the part of the payment infrastructure provided and operated by Nepal Clearing House Ltd. It is approved and regulated by Nepal Rastra Bank.

31. How do I create a new user and link my bank account?
Ans :

You can create a new user from here Or alternatively through Android Mobile App available at Google Play store You will create your user with username and password with some of your informations. Your mobile number and email id needs to be verified as the part of the username activation process.
You can link your multiple bank account(s) that are within the network of the connectIPS system. You then need to carry the downloaded and duly signed linked bank account form to your bank branch for one-time verification and activation of the linked bank account.

32. What are the services available in connectIPS?
Ans :

You can use connectIPS for payment processing, fund transfer and biller payments.

The payment processor is used for online payment at checkout from the merchant/creditor portal. Fund transfer allows to transfer to own account, bank account, mobile number or to listed favorite account. Biller payments are the third party creditor/merchant payments initiated from the connectIPS portal itself.

33. How much can I transfer?
Ans :

It is possible to send an individual payment of up to NRs 10,00,000 through web channel and NRs 100,000 through mobile channel or as per the directive from Nepal Rastra Bank (NRB).

However, your bank may set their own limit for their customers depending on their internal policy.

34. How long does it take for fund transfer?
Ans :

The service is available 24x7. The fund transfer is processed with few steps by the sender, whose account is debited on real time basis, whereas, the beneficiary typically receives the funds almost immediately.

35. Can the transferred amount be reversed?
Ans :

The payments made through connectIPS cannot be stopped or reversed through the system. For the specific cases of merchant payment, you may have to process off-line through the merchant/creditor itself.

For this reason it is important to make it certain that you are sending a right payment amount and to the right beneficiary. Before you make a payment to someone for the first time, double-check with them that you have the correct bank name, branch name and account number. Confirm the receiver’s name, if the payment is being made to the biller or by using mobile number of the connectIPS user.

36. What are the fees & charges for payments through connectIPS?
Ans :

You may refer here for details information on Fees & Charges of connectIPS e-Payment System.

37. How secure is the system?
Ans :

The system has been built with necessary security features in line with the international benchmarks for such e-payment systems. The payment data are captured, processed and transmitted on a highly secured environment with end-to-end encryption. And no customer data are shared with the merchant, except the status of the payment. The authorization request is verified based on the credentials of your connectIPS username and other verification credentials. But you also need to protect your login credentials.

38. Can I disable my linked account(s)?
Ans :

Yes you can disable you linked account, if you think you are not going to use it anymore and for longer time. You will be able to enable again by yourself.

39. Where do I contact for more information?
Ans :

For transaction specific query/issue, you may contact your bank, who will commence action on your behalf and contact NCHL as may be required. More information available