1 / 15

PAYMENT SYSTEM IN NEPAL

PAYMENT SYSTEM IN NEPAL. Short Glimpse about Nepal. Federal Democratic Republic of Nepal Land locked & least developed country. Area: 147,181Sq.km Population:28.8 million(mid July 2017) GDP: USD24.47 Billion Per capita :USD 1004 Inflation :4.00 percent

arlenejackson
Download Presentation

PAYMENT SYSTEM IN NEPAL

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PAYMENT SYSTEM IN NEPAL

  2. Short Glimpse about Nepal • Federal Democratic Republic of Nepal • Land locked & least developed country. • Area: 147,181Sq.km • Population:28.8 million(mid July 2017) • GDP: USD24.47 Billion • Per capita :USD 1004 • Inflation :4.00 percent • (Source: National Economic survey 2016-17

  3. LEGAL AUTHORITY • Nepal Rastra Bank-Central Bank of Nepal is mandated by Nepal Rastra Bank Act 2002 as an authority responsible for the regulation and supervision of Banks and Financial Institutions & payment system. • NRB is mandated by NRB Act 2002 for development of secure, healthy, and efficient payment system in the country.

  4. Financial system overview • Banks and financial institutions are licensed under four categories by NRB • Other Institutions (10) which are licensed by NRB

  5. Financial system overview • Nepal Stock Exchange Company(229 companies listed for trading ) supervised by security Board of Nepal

  6. Financial system overview

  7. Financial access as on Mid June 2018

  8. Financial access as on Mid June 2018

  9. Payment Systems in Nepal • Major payment instrument: • Cash: First and common mode of payment, cash is king concept. • CHEQUES: Cheques are Second common instrument for payment. To facilitate online quick settlement of cheques among BFIs, Electronic cheque clearing has been introduced with establishment of Nepal clearing house Ltd. (NCHL-ECC). • It enables clearing of cheques on same day irrespective of location of BFIs branches. ECC & Ips are major tools for clearing & settlement. • Cards: Debit Cards, Credit Cards, e payments are also used lately. Debit cards are most popular among users.

  10. Payment system overview • Mobile banking :with Increasing access to mobiles (currently approx 80 %) mobile banking is also growing. Facilities include intra bank fund transfer, balance enquiry, mini statement, utility bill payments etc. • Internet Banking :BFIs are increasingly providing this facility to their customers. • ATM : Total number of ATM are 2624 • Branchless banking: Effective tool for rural and semi urban areas. As of mid June 2018, 1289 branchless centers and 1,89,358 customers.

  11. Existing Law, Policies and Guidelines Bylaws • Payment and settlement Bylaw, 2015 (including second amendment 2017) Policies, Guidelines • Licensing policy for Payment related Institutions 2016 • Payment system Oversight Framework 2018 Other • National Payment System Development Strategy, 2014 Directives • Electronic retail payment threshold • Security features in electronic payment tools • Retail payment transaction threshold • Online banking & Settlement bank

  12. NRB Strategic plan (2017-2021) Nepal Rastra Bank strategic plan (2017-2021) • NRB aims at gradually moving towards cashless society by facilitating various instruments of electronic payments in a safe, secured and efficient manner. • Effective payment system enhances the stability of the financial sector, reduces transaction costs in the economy, promotes the efficient use of financial resources , improves market liquidity and facilitates effective implementation of monetary policy. NRB aims at increasing the effectiveness of payment through (i) strengthening payment and settlement legal framework and regulatory mechanism, (ii) introducing Real Time Gross Settlement (RTGS) for large value payment and (iii) establishing National Payment Gateway (NPG) and National Payment Switch (NPS)

  13. Recent Developments • Establishment of dedicated Payment systems department.(PSD) • PSD is involved in establishing legal infrastructure for regulation of payment system in country. • Payment and settlement Act forwarded to parliament for necessary approval. • To facilitate interbank payments, Nepal clearing house has launched Interbank payment system (NCHL-IPS) on 17th August 2016. • It is web based interbank solution to facilitate domestic fund transfer between accounts maintained at different BFIs. • IPS introduced for prompt inter-bank payment.

  14. Future course • Inter department task force headed by PSD has been formed to study modernization of domestic payment infrastructure such as Real time Gross Settlement (RTGS), Central Security Depository, Retail Payment System and National Financial Switch is required to give time frame for implementation. • Development of Modern, Effective and dynamic payment system in Nepal is Future agenda. • Development of effective oversight framework and other regulations will help ensure effective payment system in Nepal . BFIs as well as other payment related agencies will also be subject to effective supervision. • Cross boarder Cooperation in these areas expected.

  15. Thank You

More Related