Kathmandu, May 3rd, 2020
On May 2nd, the Ministry of Communication and Information Technology celebrates National ICT (Information and Communication Technology) Day. ICT Ministry does so in association with CAN Federation and Nepal Telecom
During this pandemic of the Covid 19, CAN Federation wants to take this opportunity to provide awareness on the importance of ICT in times like these.
The event for National ICT Day 2020 this year took place with a webinar. The webinar was hosted on the very popular Video Conference App called Zoom. More than 450 audiences were present in the webinar.
In this nationwide lockdown, the health, education, and financial sector are under a major hit. The experts discuss how IT Industry can make contributions to these sectors.
In Nepal, a cashless digital transaction is a luxury option. Askar Ali, a speaker in the Webinar explains most Nepalese use digital transactions only because of interest. He strongly believes that for a digital economy to successfully perform, it needs to be solving a problem rather than being just a luxury option to the people.
The fascinating reports showcase that more than 1 Crore Nepalese are ready and willing to shift into a digital economy.
Reports also reveal that around 1, 25,000 retail and corporate service providers are using QR for convenience of transactions.
Furthermore, the banking corporates in Nepal are well equipped for a digital economy, meaning, if NRB (Nepal Rastra Bank) declares to go cashless on short notice, Nepal today is in a better position to interact with such scenarios.
So now, a better question arises.
How can Nepal shift fully into a digital economy?
The experts suggest that the government should force digitization or give the people a reason to become a user.
- The government of Nepal needs to apply a digital influence starting with its Revenue and Expenditure Transactions.
- Provide attractions for people like waiving off a certain percentage on TAX and or VAT for digital transactions performed.
- There should be an analysis of several users of the digital economy. This will display active users and the average transaction amount.
- Corporate, Government and Retail Service providers should shift into a digital platform.
What benefits does going digital provide?
- It eliminates the business risk associated with cash like theft
- Improves transaction speed
- Eliminates Corruption
- Rise in E-Commerce
- Transparency and Accountability
What major issues are we facing?
- Trust and Security: People in Nepal are not sure if these digital transactions can be fully trusted and are secured. They become hesitant when they cannot trust a platform.
- Responsible and dedicated regulatory body: There needs to be a responsible regulatory body. A regulatory body that acts as an advocate for the users in times of need.
- Transaction limits: Transaction Limits make it less convenient many times. Extending the limit can make a great difference in the number of users.
- Technology: Not every citizen is aware of the new technology. When people are not aware do not completely understand the technology, they cannot rely on it. Therefore, people need to be provided with knowledge of these technologies.
Nepal Rastra Bank’s Strategy for 2020
- Strengthen the legal framework
- Deepening Retail Payment System Digitally
- Financial Awareness
- Coordination with Authorities
- Performing digital shift in Nepal Government’s Revenue and Expenditure Transactions.
Conclusion
The motive of the National ICT Day is to provide awareness to people regarding the IT Industry of Nepal.
Nepal has good potential to go into a fully digital economy. The success of the webinar and the opinions of experts prove so.