Banking News – Mahalaxmi Bikas Bank has signed a strategic agreement with India’s leading financial institution, HDFC Bank, to facilitate and promote cross-border financial services, particularly enabling seamless payments from India to Nepal. With this move, Mahalaxmi Bikas Bank becomes the first development bank in Nepal to introduce such a payment system.

Under the agreement, Mahalaxmi Bikas Bank will operate a system allowing customers to directly remit funds from India to Nepal, enhancing convenience for individuals and institutions engaged in remittance and cross-border trade. The two banks have completed all procedural formalities and have already conducted trial transactions.

This partnership gives Mahalaxmi Bikas Bank access to HDFC Bank’s advanced cash management services, including CMS cheque collection and electronic cash management solutions. These features enable fund transfers using various electronic methods such as National Electronic Fund Transfer (NEFT), Real-Time Gross Settlement (RTGS), and other fund transfer systems. As a result, customers in India can now deposit money directly into Mahalaxmi Bikas Bank accounts in Nepal through HDFC Bank.

In addition, customers will be able to deposit cheques issued by other Indian banks and have the equivalent amount transferred to Nepal. The agreement is expected to further strengthen banking ties between Nepal and India, providing efficient, seamless, and tech-driven financial services to customers involved in cross-border trade and remittance.

The bank believes this collaboration also reinforces its commitment to digital innovation and service expansion. Recently, Mahalaxmi Bikas Bank introduced a virtual credit card feature in its mobile banking app, ‘Mahalaxmi Smart Sathi,’ underscoring its dedication to customer-centric digital transformation.

Operating under the slogan “Strong Bank, Successful Partnership,” Mahalaxmi Bikas Bank continues to deliver quality financial services across Nepal. The bank currently operates 103 branches nationwide and serves a customer base of over 800,000.