Kathmandu. Nepal has made remarkable progress in financial inclusion in the last decade. Nepal Rastra Bank’s policy initiatives, branchless banking, mobile wallets, and digital financial services have expanded rural areas as well.
The number of bank accounts has exceeded the figure of the total population. According to the data published by Nepal Rastra Bank, the number of deposit accounts in banks and financial institutions has crossed 5.83 crore as of mid-April 2082. Despite this, Nepal lags behind the leading countries of South Asia and the world in terms of the utilization of banking facilities and the level of trust in the banking system.
Although a large proportion of the adult population has started opening accounts in banks or financial institutions, the use of formal credit is low due to metered interest creditors and individual transactions. Many still rely on informal credit sources.
There has been a rapid growth in digital banking. The total number of mobile banking users has now reached 2,67,57,000. The number of internet banking service users is 21 lakh 41 thousand. This increase points to the number of consumers switching to electronic transaction services for daily financial transactions.
However, the use of insurance services among Nepali consumers is very low. The number of voluntary term and micro insurance policies issued purely for the purpose of risk insurance is limited to around 7 percent of the total number of sales.
Nepal’s position in South Asia
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In South Asia, more than 80 percent of adults use accounts digitally. Government grants and direct benefit transfers have strengthened inclusion. The use of insurance and formal credit in Sri Lanka is much higher than in Nepal. In Bangladesh, mobile financial services have largely covered rural and low-income groups.
Although Nepal has expanded access, the use rate is lower than that of India, Sri Lanka or Bangladesh. According to the World Bank, 71 percent of adults use a bank account.
The index is based on 55 indicators
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- Access: 15 pointers, weight 35%
- Usage: 15 pointers, weight 45%
- Quality: 25 indicators, weight 20%
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The calculation methodology is based on a scale of 0 to 1, such as the Human Development Index.
2024. Result of 25{
- Overall Inclusivity Index: increased from 0.47 to 0.53
- Accessibility Index: increased from 0.49 to 0.53
- Usage Index: increased from 0.50 to 0.54
- Quality Index: increased from 0.41 to 0.50
