22nd June 2025, Kathmandu
Nepal Rastra Bank (NRB) has called for increased financial literacy in Madhesh Province. The goal is to bring more economic activities into the formal sector. NRB recently released a study report emphasizing this shift.
NRB Madhesh Financial Literacy Report
The report notes that formalization will help widen the tax base. It also suggests that promoting financial literacy can improve transparency and economic growth.
Limited Access For Marginalized Communities
Many marginalized communities in the province still lack access to financial services. NRB sees this as a key challenge. The report stresses the need for targeted efforts to include these groups in the financial system.
Skilled Youth Moving Abroad
The trend of skilled youth leaving the country is growing. This has caused a shortage of professionals in sectors like health, education, and IT. The report advises creating local job opportunities to reduce the outflow of human capital.
Remittance Must Fuel Productivity
Madhesh receives a large amount of remittance from foreign employment. However, most of it is not used productively. NRB suggests investing these funds in agriculture, small businesses, and local infrastructure. Coordination with local governments is crucial to make this happen.
Healthcare Gaps Drive People To India
Many people from border areas travel to India for medical care. Local hospitals lack skilled doctors and modern equipment. This situation increases the demand for Indian currency in the province. The report urges investment in health facilities, equipment, and workforce.
Public Education Needs Improvement
The study highlights poor education quality in government schools. NRB recommends prioritizing technical and vocational training. It also stresses the need to supply rural schools and health posts with the necessary resources.
Build Education Hubs In Key Cities
Major cities like Janakpur and Birgunj should be developed into educational hubs. The report calls for improving school infrastructure and teaching quality to support this goal.
Address Urban Waste And Pollution
Urban areas in Madhesh face rising waste and pollution issues. NRB advises proper waste management to make cities cleaner and more attractive. Controlling environmental degradation is vital for urban development.
National Projects Face Delays
Several national pride projects are underway in the province. These include the Postal Highway, Kathmandu–Nijgadh Expressway, Nijgadh International Airport, and Chure Conservation Program. However, delays and poor coordination are affecting progress. The report stresses completing these projects on time and within budget.
Tourism Needs Protection And Promotion
Madhesh has rich cultural and natural attractions. Sites like Janaki Temple, Parsa Wildlife Reserve, Koshi Tappu, Bharat Tal, and Sindhuli War Museum can boost tourism. NRB suggests better conservation and promotion to increase local economic activity.
Farmers Still Rely On Middlemen
Farmers in Madhesh often sell their produce through middlemen. They lack access to fair market prices. The report urges better market access and price support mechanisms to help them earn more.
Expand Fish Farming Potential
Areas like Janakpur and Parwanipur have strong potential for fish farming. NRB recommends investing in this sector to raise production and create jobs.
Modernize Traditional Farming
Most farming in the province is still subsistence-based. The study calls for modernization and commercialization of agriculture. This includes:
Easy access to fertilizers
Guaranteed fair prices for crops
Better storage and transport
Attracting youth into agribusiness
Final Thoughts: Urgent Need For Coordination
NRB’s study highlights many economic challenges in Madhesh Province. It stresses the need for coordinated efforts across government levels. Financial inclusion, better services, and timely infrastructure projects are key to future growth.
By formalizing the economy and improving local systems, Madhesh can unlock its full potential.
For more:- NRB Madhesh Financial Literacy Report