NRB's study report shows positive results in financial inclusion; Use of digital banking and ATM on the rise
Nepal Rastra Bank (NRB) has published a study report on the financial reach of bank and financial institutions (BFIs) in Nepal. The report shows significant improvement in terms of banks' networks, digital banking and ATM facilities.
According to the report, till Ashad end 2071 there were 204 BFIs in Nepal and this had dropped down to 149 till Ashad end 2074. However, in the past two years, NRB has licensed many laghubitta bittiya sansthans (Microfinance Companies) and because of that, the number of BFIs as of Shrawan end 2076 stood at 171. If we look at this number relative to five years ago, we can see some consolidation has definitely happened.
Although the number of BFIs has gone down, the number of their branches has gone up. Larger number of branches indicate higher penetration of financial services in the country. According to the data shown, the number of branches till Ashad 2071 stood at 3,456. This number has jumped by 154.67% to 8,805 in total. The number of BFIs' branches increased significantly in FY 2075/76 after NRB directed the banks to reach all local levels as designated by the federal structure. As of Ashwin 2076, the commercial banks have reached 739 local levels out of 753.
This increase in the banking network has led to significant improvement in the bank-to-population ratio too. In 2071, one branch of a BFI had to serve 7,666. This figure has fallen by more than twice to 3,363 people per branch. This decline aids in the improvement of customer service.
Likewise, the number of ATM Booths, branchless banking units, Debit cards and Credit cards stood at 3 thousand 316, one thousand 530, 67 lakh 8 thousand 521 and 1 lakh 23 thousand 146 respectively.
A significant rise can also be seen in the number of mobile banking and internet banking users. The number of mobile banking users has increased from 17.54 lakh in 2073 to 83.47 lakh in 2076. Similarly, the number of internet banking users has increased from 5.15 lakh in 2073 to 9.17 lakh in 2076.
