Joint operation after consolidation of NePS with NCHL

3rd June, 2024

Kathmandu, Nepal Clearing House Ltd. (NCHL) has started its joint operation from 3rd June, 2024 after acquiring Nepal Electronic Payment Systems Ltd. (NePS) amid an announcement in a formal event. This is the first such consolidation of payment system operators in Nepal, who have come together to collaborate for digital ecosystem. The Joint Operation Announcement event was graced by the presence of Governor Mr. Maha Prasad Adhikari as the Chief Guest and various dignitaries from Nepal Rastra Bank, bank & financial institutions, payment system operators, payment service providers, its employees and others.

Special general meetings of the companies held on 13th Baisakh, 2081 had approved for the consolidation of NePS with NCHL and after the final approvals from Nepal Rastra Bank and Office of Company Registrar, the joint operation was started from 3rd June 2024. NCHL and NePS are both promoted and represented by the banks & financial institutions and hence there are no change in the Board of Directors after the acquisition. The valuation was done as per the provisions of Payment & Settlement Bylaw and was carried out by 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 digital payments ecosystem in Nepal. NCHL has been operating national payment systems related to non-card based infrastructures since last 15 years, whereas, NePS has been providing card processing services since last 11 years. The consolidation of NePS with NCHL will provide access to the both card and non-card payment infrastructures and is expected to support faster rollout and acceptability of 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 β€˜EFT Card Services’. The infrastructure will be further enhanced to drive issuing and acquiring of NEPALPAY domestic card scheme and will service existing and other participating members.

The consolidated paid-up capital of over NRs 1.07 Billion with total reserve of NRs. 1.44 Billion will help to enhance infrastructures, improve risk & security controls, invest in innovations and improve service quality. The combined transaction volume after the consolidation is close to 130.50 Million, equivalent to transaction value of NRs 11.30 Trillion, till the end of Chaitra 2080.The experience and expertise of over 132 resources is expected to create further synergy to drive NCHL to the next level in Nepal and beyond.

NCHL has been operating Electronic Cheque Clearing (ECC), Interbank Payment System (IPS), Retail Payment Switch (RPS), connectRTGS, National Payments Interface (NPI as open API platform), connectIPS (retail channel & gateway) and CORPORATEPAY (business payment channel) and NEPALPAY QR. It is currently implementing NPS-National Card Switch and NEPALPAY Card.

NePS has been offering centralized card solution for card issuance, acquiring and issuing transactions from a network of 1,600+ ATMs and 9,000+ POS machines of 11 member BFIs, with underlying services of issuing and acquiring of multiple card schemes, contactless transaction, cardless withdrawal, card personalization, 3D Secure ACS and similar.

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