Mega expansion: Branchless banking in 15 more areas

KATHMANDU, MAR 23 -

Mega Bank is all set to expand its branchless banking service to 15 more areas after implementing it as a pilot project in Sangachok of Sindhupalchok and Semara of Rupandehi. The bank moved to enlarge its branchless network after getting the go-ahead from Nepal Rastra Bank (NRB).

Mega Bank’s branchless banking will be established in Lalbandi and Bagmati, Karmaiya of Sarlahi, Sumshergunj of Banke, Chilime and Dhunche of Rasuwa, Chupra Bazaar of Dailekh and Rangeli of Morang.

Likewise, Narapani and Arghatosh of Arghakhanchi, Bhalang of Kaski, Nalang and Sunaula Bazaar of Dhading, Chhatpipara and Kalaiya of Bara and Thulo Sirubari of Sindhupalchok are the other places where it will be implemented..

“Although we had applied to spread branchless banking to 48 areas, the central bank permitted us to expand in 15 areas for now after assessing our pilot programmes,” said Govinda Gurung, chief for corporate banking at Mega.

“We already have the necessary hardware and software for these areas, and we are also going to appoint business representatives to conduct branchless banking transactions within the next 10 days.”

Mega had planned to charge a fee on deposits and withdrawals for delivering the service to the people’s doorsteps in the villages. The central bank has barred it from taking a service charge on deposits but said nothing about withdrawals.

According to the bank, it had sought NRB’s permission to charge Rs 5-Rs 25 for making a deposit and Rs 10-Rs 50 for each withdrawal. The bank had planned to charge Rs 5 for deposits of up to Rs 2,000, 0.25 percent on deposits of up to Rs 10,000 and Rs 25 for any amount above that.

Likewise, the bank had planned to charge Rs 10 on withdrawals of up to Rs 4,000, 0.25 percent on withdrawals of up to Rs 20,000 and Rs 50 on withdrawals of any amount above that.

Gurung said that they would respect the central bank’s decision. According to the bank, people can benefit from its branchless banking service not only to make deposits and withdrawals but also to obtain credit. “We have also offered credit services at people’s doorsteps along with deposits and withdrawals,” said Gurung. “When customers seek credit, we assess their projects and provide collateral-free loans of up to Rs 30,000 and loans with collateral for amounts above that.”

He added that the bank’s customers could also pay their mobile bills through branchless banking.

Source: Kantipur