Paper

Financial Inclusion: State of the Art in Nepal

Analyzing the current state of financial inclusion in Nepal
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This paper analyzes the current state of financial inclusion in Nepal. It examines opportunities and challenges for ensuring financial inclusion in Nepal, and recommends measures for policymakers and financial service providers.

The paper gives an overview of efforts by the Government of Nepal to promote financial inclusion. It assesses the outreach of various types of financial services, estimates the market size and identifies gaps. It observes that while Nepal has made significant progress towards financial inclusion, continuity and sustainability of the achievements is a major challenge.

The report states that the government and financial service providers (FSP) should redesign their policies and strategies to focus on financial inclusion. Recommendations include:

  • Conducting access surveys and creating systematic client profile;
  • Identifying and reaching out to unreached populations;
  • Linking clients to non-financial service providers;
  • Mainstreaming operations of financial cooperatives;
  • Capacity development of FSPs in response to industry needs;
  • New product development and diversification;
  • Channeling available resources, technology and expertise towards financial inclusion.

 

About this Publication

By Dhakal, N.
Published