Sachin Thapa, the proprietor of My Places Money Changer in Pokhara, said the money changing business is facing a serious risk because of aggressive expansion of ATM services. [break]
“Money changers are facing another setback after the end of decade-long insurgency as most of the customers are shifting to ATMs leaving money changers high and dry,” Thapa added.
Not only Thapa, the story of dozens of money changers, who once used to enjoy handsome business, is the same. The decline in business has forced money of them to start side business like cyber café, ticketing counter and trekking business, among others.
“Money changers that earlier used to make business worth over tens of millions of rupees a year are seeing their annual transaction drop to around Rs 2.5 to Rs 3 million,” said Daya Nanda Pokharel, president of Money Changers´ Association in Pokhara.
According to Nepal Rastra Bank´s regional office in Pokhara, a total of 59 money changers have taken permission to operate in Pokhara and surrounding areas. Similarly, the central bank has authorized 26 hotels and resorts, 41 travel agencies, 25 trekking agencies and 7 other organizations to operate money changing business.
“Combined annual transaction of 50 money changers in Pokhara used to hover around one billion rupees. But transaction volume has now dropped to about one-third of what it used to in the past,” Pokharel added.
Banks and financial institutions have installed 36 ATMs in Pokhara and 12 of them operate in a 2 km stretch at Lakeside. Each ATM makes payment of around Rs 10 million a day during peak tourist season, said bank officials.
“Foreign tourists are more attracted to ATMs as plastic money is more convenient for them,” a banker told myrepublica.com.
Pokharel said money changers now need to adopt new innovations to save their business. “We need to explore new ways to start money changing service through credit cards,” Pokharel added.
Local money changers have already informed the central bank about their plight.
Min Bahadur Shrestha, chief manager of NRB Pokhara office, urged money changers to explore new ways to continue their business.
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