2nd May 2025, Kathmandu
The Government of Nepal has unveiled key financial reforms for the fiscal year 2082/83. These reforms focus on boosting the digital economy and improving the health of financial institutions. President Ramchandra Paudel announced the new policies while addressing a joint session of the Federal Parliament.
Nepal Financial Reforms 2082/83
The government plans to implement the Second Financial Sector Development Strategy. This strategy aims to strengthen the financial system. It will improve transparency, reduce financial risk, and support long-term economic growth. The plan also includes new steps to modernize laws and policies in the banking sector.
Digital Bank on the Horizon
A major highlight of the announcement is the creation of a digital bank. The government will introduce a legal and policy framework to support its setup. This digital bank will offer services online and help expand cashless transactions. It will also increase access to financial services in rural and underserved areas.
The aim is to reduce reliance on physical banks and encourage a fully digital finance system. This aligns with Nepal’s larger goal of building a digital economy. The new institution is expected to operate entirely online, providing quick and secure financial solutions.
Bad Bank to Manage Non-Performing Assets
Along with a digital bank, the government also plans to establish a bad bank. This will be an asset management company designed to handle non-performing loans and non-banking assets. Many banks and financial institutions in Nepal struggle with bad debts. The bad bank will help reduce that burden.
It will also support financial institutions by buying and restructuring toxic assets. This will allow healthy banks to focus on lending and customer service. As a result, credit flow in the economy is expected to improve.
Digital Economy Through ICT Infrastructure
To support these reforms, the government will expand ICT infrastructure. This includes improving digital connectivity, investing in cybersecurity, and promoting digital literacy. The plan will provide the digital backbone required for both public and private sector innovation.
ICT growth will also benefit digital banking and e-governance. The expansion of these services will create new jobs and help modernize the economy. It is a key part of the government’s effort to transform Nepal into a technology-driven nation.
Long-Term Economic Vision
These new financial policies show Nepal’s strong push toward modernization. By combining digital innovation with sound financial management, the government aims to build a more resilient economy. The reforms will help ensure stability, boost public trust, and attract new investment.
President Paudel stressed the need for better financial services and stronger institutions. Through digital banks, a bad bank, and ICT development, Nepal is preparing for a more efficient and inclusive future.
For more: Nepal Financial Reforms 2082/83