Financial inclusion performs a significant role in shaping the socio-political and economic condition of the nation. Every household and businesses are need of access to finance in Nepal. A government should consider financial inclusion as an important element in the agenda because it is the most important key factor for balancing development.
The reason behind civil unrest and other crises fostering violence in Nepal is financial exclusion. The path of finance exclusion affects the economy by creating a brutal trap of underdevelopment. For the country like Nepal who has entered to federalism financial inclusion and effective policy has been a quick necessity.
The idea of financial inclusion has become an important part in all over the world. Realizing the importance of financial inclusion many of the countries have started doing intensive research in this sector. The Advisory Group on Inclusive Financial Sector to advise on global issues related to inclusive finance has already been created by the United Nations.
The G20 leaders are also very serious about the matter. Similarly, like much other organization, World Bank has also shown some sort of seriousness, they have devised knowledge products on coordination structures of financial inclusion strategies. These practical international mechanisms among others have assisted developing and underdeveloped nations in framing its national financial inclusion planning marking its importance for sustainable growth.
The condition of financial inclusion in Nepal is very fine in structure. At present case 61 percent of the adult population is formally served, 21 percent applies only informal services and 18 percent of the adult population is financially excluded.
Nepal Rastra Bank has placed financial inclusion within its policy outline and has been focusing it through various policy actions, for example facilitating credit for investment in the productive field, refinancing schemes to the cottage and small businesses, directive on consumer rights, branchless banking and mobile and online service.
Although different plans and policies have been made in regard to financial inclusion there is always a lacking of good results. If no effective intervention is build to support financial inclusion in rural communities extreme economic disparity can be experienced.
Political economy will suffer badly if there would be delayed making financial inclusion. It may invite a slower economic growth rate.
A proper policy and strategy for financial inclusion are as much as important like collecting tax revenue from different states, creating job opportunities, maintaining a balance of trade and increasing the living standard of people. A well-prepared strategy for financial inclusion will lead the country towards sustainable prosperity.
