What happened:
On February 3, 2026, the Reserve Bank of India and Nepal Rastra Bank held talks to enable unrestricted, bulk digital transfers of Indian rupees between their banking systems. Discussions followed a meeting between RBI Governor Sanjay Malhotra and NRB Governor Vishwanath Paudel in Mumbai, covering payments, currency management, and cross-border digital transactions.
Why it matters:
The move could modernise India–Nepal financial linkages by reducing reliance on physical currency, easing trade, tourism, and remittances. It also supports deeper monetary cooperation and smoother cross-border payments between the two economies.