Terms and Conditions for Fonepay App

By accessing or using the Service you agree to be bound by these Terms. If you disagree with any part of the terms then you may not access the Service.

Last updated: 20/09/2022



The following words and phrases shall have the meanings as follows unless the context indicated otherwise. Other words and/or expressions used but not specifically defined herein shall have the respective meanings as per the Operating Procedures issued by the Nepal Rastra Bank (NRB) and Fonepay Payment Service Ltd. (“Fonepay”).


“Bank Account(s)" refers to the User’s bank account(s) held and maintained with the respective bank and linked to the Fonepay user in the Fonepay App.


"User/Customer" refers to the customer of the bank availing Fonepay services via Fonepay App.


“Creditor(s)/Merchant(s)” refers to and includes mobile-app-based and offline creditor/merchant who provide goods and/or services in exchange for payment through Fonepay from User/Customer and whose account is credited.


"Bank" refers to banks and financial institutions (BFIs) licensed by NRB, which are allowed to acquire Customers and provide payment (credit/debit) services to the Customers and Creditors/Merchants.


“Fonepay System” refers to the core system, related equipment, and software owned by Fonepay to provide payment services through its Fonepay Network.


"Fonepay Service" refers to the electronic payments, transfer, and collection services provided by Fonepay to its Customers and/or Creditors/Merchants, and banks, based on the Payment Instruction, through the channels of the Fonepay System as per the Fonepay Rules & Regulations and after a one-time enrollment process.


“Username” refers to the user identification code/name of a customer in Fonepay.


“Password” refers to the password against the Username for identifying the Customer.


“OTP/One Time Password” refers to a unique and time-sensitive password used as the second layer of security on Fonepay Payment System. Such OTP will be sent to the Customer in the registered mobile number and email ID via SMS/Email and shall be valid for specified time for one event only.


“Security credential” refers to the combination of user’s username, password and/or OTP and/or alternate mechanism used for authentication of the user or authorization of transactions.


Applicability of Terms

Customers desirous of using the Fonepay Services provided in the Fonepay App must enroll once, in the format, in such form, manner, and substance as the Fonepay prescribe. In order to initiate transactions, the Customer may independently generate a Username and Password from the Fonepay App and link their bank account. The User can initiate transactions using the Fonepay App by linking numerous bank accounts that have been defined and standardized in accordance with the Fonepay Rules & Regulations. By applying for and accessing the Payment Service, the Customer accepts these Terms, which shall govern the provisions of the Fonepay Services. The Terms shall be, in addition to and not in derogation of the Fonepay Rules & Regulations issued/updated from time to time.


By using the Fonepay Service, the Customer hereby acknowledges that the Customer has read and understood the terms & conditions and fully agrees that the rights, obligations, and liabilities set forth therein and in these Terms, insofar as they relate to the Customer, shall be binding on the Customer and that nothing in using the Fonepay Service shall be interpreted as granting the Customer any legal or other rights against Fonepay and/or any other participant in the Fonepay System other than the Customer. All terms and conditions established by the Bank in connection with the Customer Accounts shall continue to apply, regardless of anything to the contrary in this document.


Scope of Fonepay App Service

Fonepay app offers electronic payment, transfer, or collection services to the customers of the member BFIs. Customers can download the Fonepay App and link their bank accounts to the Fonepay App to access electronic payment, transfer, and collection services through the Fonepay App. Fonepay Service shall be as per the limit/rules set in the Fonepay Rules & Regulations, which shall restrict the transaction up to a specific amount and/or a number of counts on a daily, weekly, monthly, and/or yearly basis.


Rights and Obligations of the Customer

To access the Fonepay Services provided through the Fonepay App, Fonepay requires Customers to create an account in the Fonepay App. Fonepay may also require the Customer to provide their personal information for the creation of the account. A unique Username and Password set up by the Customer is created to identify the Customer in the Fonepay System. The Customer is free to modify the personal information and Password in the account.


An OTP sent to the registered mobile number/email address through SMS/email for the verification while creating the Account and for completing the financial and non-financial transactions using the Fonepay System. Any financial or non-financial loss resulting from the misuse of information submitted to the aforementioned email address and/or mobile number shall be the responsibility of the Customer.


To access the payment services provided by Fonepay, Fonepay requires Customers to link their Bank Accounts to the Account created in the Fonepay App. This bank link service shall only be available to Customers who have activated their mobile banking facility with the respective bank. The Customer will be forwarded to their mobile banking site and will have to login to their mobile banking for verification. By linking the Bank Account with the Account, the Customer agrees to provide an irrevocable right to debit the Customer’s Bank Account for completion of transaction intended by the Customer and agrees to any and all of the terms set by Fonepay for providing the Fonepay Services.


The linked bank account statement and the Fonepay Payment System both provide online access to a record of the transactions. It is the responsibility of the Customer to verify any advice or confirmation that is assumed to have been received by them immediately following the transaction.


Fonepay shall use commercially reasonable efforts to control and manage the risks associated with providing the services, as well as to ensure that its systems connected to the Fonepay Services are installed with appropriate security designs. Any incidental, indirect, special, consequential, or exemplary damages, including without limitation any loss of use, income, profits, or savings, are expressly disclaimed by Fonepay as obligations to the Customer and any other party.


Sharing of Information

In order to provide the Fonepay Services, the Customer unconditionally and irrevocably grants Fonepay access to their account(s) and records. The Customer acknowledges and consents that Fonepay may store and handle personal and other information about its Account(s) on a computer or in another manner in connection with the Fonepay Service, for purposes of analysis and/or as required by law. Other provision in relation to the collection and use of User information shall be governed by the Fonepay Privacy Policy.


Disclaimer of Liability

Despite its best efforts, Fonepay cannot be held liable for any non-response or delay in replying caused by any reason, including malfunctions with operational systems, telecommunications issues, network failures, or legal requirements. When a Fonepay transaction fails due to a timeout transaction, which occurs when neither the Fonepay system nor the beneficiary bank respond to the transaction request, nor when incorrect information, including but not limited to incorrect beneficiary details, mobile number, and/or account details, are provided in the transaction, Fonepay shall not be liable for any loss, claim, or damage suffered by the Customer and/or any other third party.


Fonepay will abide by the provisions of the Electronic Transaction Act 2063 and not be held responsible for any cybercrimes such hacking, etc., or for any unauthorized transactions or transactions made using dishonest or unlawful means. The Customer is responsible for holding Fonepay and each of their officers and employees harmless from any and all liabilities, claims, demands, losses, damages, costs, charges, and expenses (including, without limitation, legal fees on a full indemnity basis) that may be incurred by any of them in connection with the provision of the Fonepay Services.


If access to the Fonepay Service is not available as requested due to factors such as but not limited to natural disasters, governmental restrictions, or any other event beyond the control of the Bank and/or Fonepay, Fonepay shall under no circumstances be liable to the Customer. Use of the Fonepay service that is unethical or improper may subject the customer to financial penalties or result in the suspension of the Fonepay Services.


The authenticity and accuracy of the transaction will be demonstrated beyond a reasonable doubt by all records generated by the transaction resulting from the use of the Fonepay Service, including the time of transaction. In particular, Fonepay expressly disclaims all implied warranties, such as those of merchantability, suitability for a specific purpose, data accuracy and completeness, and any warranties relating to non-infringement in the Fonepay Service.


The Customer agrees to and undertake not to perform restricted activities listed within this section including:

  • Comply with the Terms and Conditions described herein or Fonepay Rules and Regulations related to the use of the Fonepay App is available on the Fonepay App at all times;
  • Impersonate any person or entity or to falsely state or otherwise misrepresent your affiliation with any person or entity;
  • Use the Fonepay App for illegal purposes;
  • Attempt to gain unauthorized access to or otherwise interfere or disrupt other computer systems or networks connected to the Fonepay App or Services;
  • Interfere with another’s utilization and enjoyment of the Fonepay App;
  • Post, promote or transmit through the Site any prohibited materials as deemed illegal or against public policy by the Government of Nepal; or
  • Use or upload, in any way, any software or material that contains, or which you have reason to suspect that contains, viruses, damaging components, malicious code or harmful components which may impair or corrupt the Fonepay App’s data or damage or interfere with the operation of another User’s computer or mobile device or the Fonepay App and use the Fonepay App other than in conformance with the acceptable use policies of any connected computer networks, any applicable Internet standards and any other applicable laws.


Undertaking these activities will result in immediate cancellation of your account, services, reviews or any existing incomplete transaction with us and in severe cases may also result in legal action.


Trademarks and Copyrights

The graphics, logos, page headers, button icons, scripts and service names used in the Fonepay App are the trademarks or trade dress owned by Fonepay or any affiliate companies and may not be used in connection with any service that does not belong to Fonepay or in any manner that is likely to confuse customers, or in any manner that disparages or discredits Fonepay. All other trademarks that appear on the Fonepay App are the property of their respective owners, who may or may not be affiliated with, connected to, or sponsored by us.


All intellectual property, whether registered or unregistered, in the Fonepay App, information content on the Fonepay App and all the website design, including, but not limited to text, graphics, software, photos, video, music, sound, and their selection and arrangement, and all software compilations, underlying source code and software shall remain Fonepay’s property. The entire contents of the Fonepay App also are protected by copyright as a collective work under Nepalese copyright laws and international conventions. All rights are reserved.



The Customer acknowledges and undertakes that the Customer is accessing the services on the Fonepay App and transacting at their own risk and is using their best and prudent judgment before entering into any transactions through the Fonepay App. Fonepay shall neither be liable nor responsible for any actions or inactions of the bank or third party suppliers who deliver the products or services nor any breach of conditions, representations or warranties by any third party and hereby expressly disclaim and any all responsibility and liability in that regard. We shall not mediate or resolve any dispute or disagreement between you and the third-party.


Fonepay further expressly disclaim any warranties or representations (express or implied) in respect of quality, suitability, accuracy, reliability, completeness, timeliness, performance, safety, merchantability, fitness for a particular purpose, or legality of the products listed or displayed or transacted or the content (including services or pricing information and/or specifications) on the Fonepay App. While Fonepay has taken precautions to avoid inaccuracies in content, Fonepay App, all content, information (including the price of products), software, products, services and related graphics are provided as is, without warranty of any kind.


Fonepay shall neither be liable or responsible for any actions or inactions of any other service provider as listed on the Fonepay App which includes but is not limited to payment providers, installment offerings, warranty services amongst others.



Any claim, suit, action, or other proceeding brought against Fonepay, its affiliates, directors and employees, representatives, or agents by a third party will be indemnified, defended, and held harmless by the Customer, at its own expense, to the extent that such claim, suit, the action, or other proceeding is brought against Fonepay, directors and employees, representatives, or agent with reference to:

  1. A violation of the Terms by the Customer;
  2. Any deletions, additions, insertions, or alterations to, or any unauthorized use of, the Fonepay Service by the Customer;
  3. Any misrepresentation or breach of representation or warranty made by the Customer contained herein;
  4. Any breach of any covenant or obligation to be performed by the Customer hereunder;


The Customer agrees to cover any costs, damages, and expenses, including but not restricted to reasonable attorneys' fees and costs, incurred by or in relation to or originating from any such claim, suit, action, or process attributable to any such claim.


Third Party Business

Fonepay provides links to the websites of affiliated companies and certain other businesses. Fonepay is not responsible for examining or evaluating, and Fonepay does not warrant or endorse the offerings of any of these businesses or individuals, or the content of their websites. Fonepay does not assume any responsibility or liability for the actions, products, and content of any of these and any other third-parties.



The Fonepay App allows the customer to disable the linked bank account(s), which prevents the linked account from being used to commence a payment transaction. The Customer can, however, reactivate the linked account as needed. If the customer violates any of these Terms, Fonepay may immediately suspend or cancel all or part of the services offered by the Fonepay without giving any warning and without assigning any justifications.


General Conditions

  1. The Fonepay services and these Terms will be governed by and interpreted in accordance with the laws of Nepal, and the parties will subject to the exclusive jurisdiction of the Courts of Nepal.
  2. In these Terms, the clause heads are merely included for convenience and have no bearing on the content of the relevant clause.
  3. Any of the Terms specified herein may be altered or supplemented at any time by Fonepay, who shall use reasonable efforts to provide prior notice of such changes. These notices, which may be published on the website or in a newspaper, will have the same impact as a notice personally given to each Customer.
  4. Any provision of these Terms that is illegal or unenforceable under the law shall be ineffective to the extent of such illegality or unenforceability, but such prohibition or unenforceability shall not impact or render invalid the remaining sections of these Terms.
  5. The Bank shall have the right of set-off and lien, regardless of any other lien or charge, present or future, on the deposits kept in the Bank Account(s) to the extent of all outstanding dues, of any kind, resulting from the Fonepay services provided to and/or used by the Customer.



Fonepay reserves the right to make changes to the Fonepay App, its policies, these terms and conditions and any other publicly displayed condition or service promise at any time. The Customers will be subject to the policies and terms and conditions in force at the time the Customer uses the Fonepay App unless any change to those policies or these conditions is required to be made by law or government authority. If any of these conditions is deemed invalid, void, or for any reason unenforceable, that condition will be deemed severable and will not affect the validity and enforceability of any remaining condition.


Events Beyond Control

Fonepay will not be held responsible for any delay or failure to comply with obligations under these conditions if the delay or failure arises from any situation which is beyond our reasonable control.



The Customer acknowledges and recognize that Fonepay is a commercial enterprise and reserve the right to conduct business to achieve its objectives in a manner it deems fit. The Customer also acknowledges that they commit any breach the conditions stated on the Fonepay App and Fonepay take no action, Fonepay is still entitled to use its rights and remedies in any other situation where the Customer commits any breach of these conditions.


Contact Us

You may contact us at csd@fonepay.com