Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has concluded that continuous efforts are needed to ensure consumer-centric financial services.
This conclusion has been made in the Developed Financial Inclusion Index (FII) report prepared by the central bank. The index provides a comprehensive assessment of the level and progress of financial inclusion in Nepal.
This index is calculated using a method similar to the Human Development Index (HDI). Whose value is normalized on a scale of 0 to 1. A higher score indicates greater financial inclusion.
The index is constructed using 55 different indicators in three dimensions. Of these, 15 indicators represent access, 15 indicators represent usage and 25 indicators represent quality.
Each dimension of the index has a specific weight. As per the provision, 35 per cent will be for access, 45 per cent for usage and 20 per cent for quality.
FY 2024. Overall FII increased to 0.53 from 0.47 in Q25. This reflects a continuous and significant improvement in access to financial services, their usage, and the quality of services.
All three dimensions of the index performed well. The access index increased by 0.53. This reflects the expanding presence of financial institutions, service points and digital delivery channels across the country.
The usage index is at 0.54. This reflects the increasing engagement of individuals and households in banking, digital payments, insurance, and other financial services.
In particular, the quality index has improved to 0.50. This reflects a significant increase in financial literacy, a stronger consumer protection system, improved transparency, and a better overall customer experience.
These results reflect the positive impact of policy initiatives, digital financial innovations and regulatory measures implemented by the NRB and other stakeholders. While remarkable progress has been made, continued efforts are needed to strengthen digital infrastructure, promote financial literacy, and ensure inclusive and consumer-centric financial services. It deepens financial inclusion in Nepal and supports inclusive economic growth.
