In order to promote cashless transactions, the Nepal Rastra Bank (NRB) would establish a countrywide payment switch.
In announcing the monetary policy on Friday, the NRB stated that the fiscal year 2022/23 will be designated as the year of promotion of electronic payment and transaction, for which it will emphasise essential infrastructure development and raising awareness in the current fiscal year 2021/22.
The policy has stressed the usage of the country’s own payment card, as well as the interconnection of electronic payment gateways and the clearance and recording of digital payment gateways.
Special re-loans would be made available to payment service providers or payment system operators, as well as communication service providers, for the development and promotion of the entire electronic payment system ecosystem. The central bank will make the required measures to facilitate revenue and other types of payments via banking and digital systems.
Beneficiaries entitled to social security allowances will be able to receive them online from banks that engage with government transactions. Over the ongoing COVID-19, the deadline for payment service providers and payment system operators to fulfil minimum transactions and consumers has been extended to mid-July 2022.
Similarly, a digital loan guideline would be developed and implemented to assist banks and financial institutions in providing digital services such as loan application and approval. The strategy aims to conduct a feasibility study of digital currency in the country at a time when many foreign governments have embraced it or are working on it. It would be made possible for anybody to apply for citizens saving bonds and foreign employment bonds digitally, and a study of the usage of cloud infrastructure would be conducted.
There is a policy in place to do the necessary research on the subject in order for payment providers to provide microcredits up to a particular amount in accordance with the concept of digital banking. This aims to encourage micro, small, and cottage industries, as well as startups.
According to Governor Maha Prasad Adhikari, payment service providers and payment system operators, with the exception of banks and financial institutions, must report transactions above the ceiling as well as details of suspicious transactions to the financial information unit.