Kathmandu: Nepal’s digital financial sector is rapidly expanding, driving financial inclusion and economic growth, according to a flagship report launched by the International Finance Corporation (IFC) and Nepal Rastra Bank (NRB).
The report outlines key milestones achieved through two major projects: Access to Financial Services, supported by Japan and the United Kingdom, and Digital Financial Services in Nepal, backed by the Government of Korea. It highlights the successful implementation of the National Payment System Development Strategy (NPSDS) and Retail Payment Strategy, which have significantly expanded digital transactions, particularly in underserved areas.
“Digital finance is a dynamic and rapidly evolving field,” said Gregory Smith, IFC Manager for South Asia. “This report offers financial institutions and regulators insights into digital finance trends and strategies to ensure a sustainable digitalization journey for Nepal.”
Over the past decade, advancements in financial technology, internet penetration, and the adoption of electronic payments have reshaped Nepal’s financial landscape. The report notes a 125% increase in digital transactions between FY 2019/20 and FY 2021/22, with total digital payments rising from NPR 2.8 trillion (USD 21 billion) to NPR 6.2 trillion (USD 47 billion).
NRB Governor Maha Prasad Adhikari emphasized the importance of digital financial services in fostering financial inclusion, reducing costs, and improving efficiency. “Our longstanding partnership with IFC will help extend these essential services to more people and create a more equitable financial future for all Nepalis,” he said.
The report also identifies key areas for further growth, including investment in digital infrastructure, financial literacy, and cybersecurity, to ensure safe and widespread access to digital financial services for all citizens.