3.12m Nepalis carry credit, debit cards

KATHMANDU, OCT 25 -
 
Nepali banks and financial institutions added 583,573 new debit card holders to the country’s banking channel in the first eight months of the fiscal year. According to Nepal Rastra Bank (NRB), the number of debit card holders reached 3.58 million as of mid-August 2013 with this addition.

Likewise, the banking sector saw the addition of 4,914 new credit card holders as of mid-August this year, bringing the total number of credit card holders to 38,700. There are 3.12 million credit and debit card holders in Nepal currently, according to the central bank.

While commercial banks, development banks and finance companies can issue debit cards , only commercial banks have been allowed to provide credit cards. Commercial banks have so far issued 2.75 million cards, development banks have issued 265,500 cards and finance companies 104,990 cards.

Ashoke Rana, chief executive officer of Himalayan Bank, said the higher priority given by financial institutions to reduce use of cash and provide easier access to customers had played a crucial role in the significant increment in card issuance.  “Banks are now issuing debit cards to almost all the customers opening new accounts. This has resulted in the significant growth,” Rana said.

Bankers said that almost 95 percent of bank customers were receiving debit cards . “This is a big growth and a very positive sign for the country’s banking industry. Since cards are the easiest means for personal transactions, the issuance figure too has increased,” said Rajan Amatya, deputy general manager at NIBL Bank.

“The expansion of banks and financial institutions across the country and increasing awareness among customers are among the major reasons behind the increase in the number of card holders,” he added. Both Himalayan Bank and Nepal Investment Bank are leading banks with regard to issuance of cards. Likewise, introduction of branchless banking services by financial institutions in several places across country, where establishing a branch office is difficult, has too played a crucial role in the aggressive issuance of cards, according to Amatya.

The country’s banks and financial institutions maintain a total of 1,499 ATM outlets. In total, 31 commercial banks are operating 1239 ATM booths across the country. Likewise, development banks have 233 ATM outlets while finance companies have opened 27 ATMs.

The aggressive expansion of ATM outlets by financial institutions has maximized the reach of the general people, thus increasing their charm among those having bank accounts, bankers said.

Source: The Kathmandu  Post