IFC Nepal Rastra Bank Digital Finance Report: 125% Payment Growth, Financial Inclusion
4th April 2025, Kathmandu
The International Finance Corporation (IFC) and Nepal Rastra Bank have released a report on the impact of digital financial services in Nepal. The findings highlight how digital finance is transforming the financial sector, promoting financial inclusion and boosting economic growth.
IFC NRB Digital Finance Report
The report focuses on two major projects. One project, supported by the governments of Japan and the United Kingdom, aims to improve access to financial services. The other, backed by the Korean government, focuses on expanding digital financial services in Nepal. Both initiatives have contributed to significant progress in the country’s digital finance sector.
Nepal Payment System Development Strategy has played a key role in these advancements. The implementation of retail payment strategies and the rise of digital payment platforms have made electronic transactions more accessible, especially for underserved communities.
Gregory Smith, IFC’s Regional Manager for South Asia, emphasized the importance of digital finance. He stated, “Digital finance is evolving rapidly. This report provides financial institutions and regulators with an overview of its development. It also offers insights to promote a sustainable digital transformation in Nepal’s financial services industry.”
Nepal has seen remarkable growth in financial technology over the past decade. Factors such as internet expansion, technological innovation, and increasing digital payments have reshaped the financial landscape. Businesses and individuals now have more opportunities to engage in digital transactions.
The report highlights a significant rise in digital payments between the fiscal years 2019/20 and 2021/22. Transactions increased by 125%, from NPR 280 trillion (USD 21 billion) to NPR 620 trillion (USD 47 billion). This surge indicates the growing acceptance of digital payment systems in the country.
Nepal Rastra Bank Governor, Maha Prasad Adhikari, underscored the potential of digital financial services. “Digital finance enhances financial inclusion, reduces costs, and improves efficiency. Our partnership with IFC has helped extend these essential services to more people. Through collaboration with the public and private sectors, we aim to create a more inclusive financial future,” he stated.
The report also identifies key areas for further development. Investments in digital infrastructure, financial literacy, and cybersecurity are crucial for sustaining progress. By addressing these factors, Nepal can ensure broader access to secure and efficient digital financial services.
Digital finance has already brought significant changes to Nepal’s financial sector. The expansion of digital payment platforms and regulatory advancements has encouraged more people to use electronic transactions. With continued investment and policy support, the country is on track for even greater financial inclusion and economic growth.
The IFC and Nepal Rastra Bank remain committed to strengthening Nepal’s digital financial ecosystem. Their joint efforts will help create a more secure, efficient, and inclusive financial landscape for all Nepalese citizens.
For more: IFC NRB Digital Finance Report
