Nepal Rastra Bank Implements New System for Financial Inclusion

Nepal Rastra Bank has recently implemented new policies aimed at expanding financial access and inclusion. These new policies focus on using digital technology, promoting small and medium enterprises, increasing financial literacy, and promoting gender and environmentally friendly banking practices.

Previously, several policies were in place for financial inclusion, but the new system aims to make the process more effective. The former policies had helped expand financial access but had some weaknesses that prevented universal access to financial services.

Differences Between Old and New Policies

Earlier, the policies for financial inclusion included efforts to increase financial literacy and education, innovation in digital technology, and the promotion of small, medium, and micro-enterprises. However, these policies were not sufficiently effective. They failed to include the entire population in financial services and showed some disparities in different areas.

The new system, however, prioritizes the development of financial infrastructure, regulatory roles concerning financial conduct, partnerships, and cooperation. It aims to expand the reach of financial services more broadly. The new system also includes data collection, analysis, evaluation, and periodic surveys and measurements to make financial inclusion more effective.

Key Features of the New System

The new system incorporates several key features for financial inclusion. The central bank has introduced policies for inclusive financial access, financial literacy, financial education, innovation in digital technology, and the promotion of small and medium enterprises. Additionally, the policies include promoting gender and environmentally friendly banking, sustainable and broad-based economic development, development of financial infrastructure, regulatory roles concerning financial conduct, partnerships and cooperation, data collection, analysis and evaluation, and periodic surveys and measurements to enhance financial inclusion.

These policies are expected to play a significant role in bringing financial services to everyone. The new system prioritizes the development of financial infrastructure, making banking services easier, safer, and more accessible.

Goal of Financial Inclusion

According to a study report conducted by Nepal Rastra Bank in 2021, as of June 2020, 67.3% of the population had an account in a bank or financial institution based on at least one account per person. The new system aims to make the goal of financial inclusion more effective.

Expected Impact of the New System

The new system aims to include everyone in financial services. It will make financial services easier, safer, and more accessible. The new policies cover all necessary aspects for financial inclusion. Therefore, the reach of financial services is expected to be broader and more effective.

The new system aims to include 67.3% of Nepal's total population in banking services. To achieve this, banks and financial institutions will also make various collaborative efforts.

In conclusion, the new system will significantly contribute to financial inclusion and make Nepal's economic development sustainable and broad-based. The new policies aim to make financial services accessible to everyone and enhance financial inclusion effectively. This will make financial services simple, secure, and accessible for all.