KATHMANDU, July 16: The level of financial inclusion in Nepal is better with 61 percent adults having access to formal finance, according to a report.
According to the findings from the supply side study and roadmap for financial inclusion in Nepal, launched in Kathmandu on Friday, only 18 percent are completely excluded from access to formal finance.
The findings of a joint study of Nepal Rastra Bank, the United Nations Capital Development Fund (UNCDF) and the United Nations Development Program (UNDP) also stated that the actual usage of the financial products is, however, low especially with regard to digital transactions, insurance and credit. "Existing financial products are homogenous and does not meet the diverse financial needs of the population," it reads, adding that there is a need for access to low-cost, flexible and diverse financial products, better tailored to the unique needs of the population which can enable individuals to manage their financial lives, increase income, manage risk and build wealth over time.
The findings have recommended six broader areas including unlocking constrained credit and savings markets; improving payment systems; bolstering risks mitigation capabilities; enhancing and leveraging locally based financial service providers; enhancing financial inclusion support in state governance, and effective consumer empowerment and education.
The report was jointly launched by Yuba Raj Khatiwada, vice chairperson of the National Planning Commission; Chiranjibi Nepal, governor of the Nepal Rastra Bank; and Ambassador of the Danish Embassy Kirsten Geelan.
Addressing the launching ceremony, NPC Vice Chairperson Khatiwada highlighted that the financial inclusion should be meaningful so that it can contribute to improving the living standards of the people and take poor people out of poverty.
Likewise, Governor Nepal said that the goal of the financial inclusion should be focused toward raising the quality of the life of poor people and reducing the level of poverty.