Kathmandu. Nepal Rastra Bank (NRB) has revealed that there has been significant progress in financial inclusion in Nepal.
According to the Rastra Bank, the financial year 2078. Fiscal year 2080 compared to 79 (2021/22). There has been a significant improvement in the inclusion index in 81 (2023-24).
Fiscal Year 2078. Compared to the index value of 0.40 of 79 (2021/22), FY2080. According to the Rastra Bank, 81 (2023-24) has increased to 0.47.
In particular, the Financial Access Index improved from 0.38 to 0.47. This indicates that many financial institutions, digital tools and means are reaching the population. The utilization index increased from 0.43 to 0.49, reflecting the overall increase in the use of digital payments, banking transactions and financial services.
The quality index, which measures aspects such as financial literacy, customer satisfaction, barriers to access, and consumer safety, rose from 0.36 to 0.41. While the increase in the quality dimension is more valid, it indicates progress in areas such as transparency, fairness and inclusivity in the financial system.
Although Nepal’s Financial Inclusion Index has made meaningful progress in bringing more people into the formal financial system, there is still room for reforms, the NRB said.
There is still work to be done on the path of improving service quality in particular and ensuring equal access for all. Continued efforts in financial literacy, innovation in service delivery, digital infrastructure and customer security will be critical to moving towards a more inclusive and sustainable financial system.
Financial inclusion has become an important national priority in recent years. Inclusive economic growth requires ensuring that all citizens – especially those from rural, remote or disadvantaged communities – can access financial services. In this context, Nepal Rastra Bank has developed and regularly updated the Financial Inclusion Index (FII) to measure and monitor progress in the sector.
The Financial Inclusion Index FII is an overall index that measures the extent of financial inclusion based on three key dimensions: accessibility, utilization, and quality. Each dimension of the index carries a specific weight: access is given 35%, usage 45%, and quality 20%.
This includes a wide range of financial services such as banking, digital payments, insurance, microfinance, securities market (investment) and social security. This indicator will help policymakers understand where progress is being made and where additional efforts are needed to ensure that financial services reach everyone fairly and effectively.
