August 4, 2020 | Investopaper
The Employees’ Provident Fund has made provision to repay various loans online through Connect IPS e-Payment. The fund has made arrangements to repay loans including simple cycle loans, educational loans, home loans, home maintenance loans and special loans online. The collection of such loan repayments will be made directly to the designated accounts of Himalayan Bank, Machhapuchchhre Bank and NIC Asia Bank.
Employees’ Provident Fund and Nepal Clearing House Limited signed an agreement in Shrawan last year to conduct digital payment transactions based on bank accounts using the National Payments Interface (NPI). As per the agreement, the fund has been depositing the collateral and other payments directly in the bank account of the beneficiary since Shrawan last year.
Accordingly, Rs 5.36 billion has been paid through NPI till Ashad end, 2077. The fund also plans to collect monthly payments from various organizations based on their contributions to the fund in the near future through online.
Along with the arrangement of loan repayment through this digital medium, various loans of the provident fund can be repaid online through Connect IPS directly from the accounts of 55 banks and financial institutions affiliated to this system.
NCHL has been providing services to various insurance, remittance, PSP-PSO, government and semi-government organizations as indirect-technical members in its payment systems.