Although "Digital Banking" is a relatively new idea in Nepal, it is developing quickly. People in Nepal are becoming more familiar with the digitalized banking procedure as a result of a rise in internet usage. The banking industry has gone fully digital, simplifying, expediting, and making transactions transparent. Digital banking services in Nepal include creating an online account, paying utility bills, transferring money, and many more services.
Nowadays, both online and mobile banking services are required. It only takes a single tap or click to send and receive money. As per Nepal Rastra Bank, the number of mobile banking users by the end of fiscal year Jul-22 was 1,83,07,000, and internet banking customers were 16,84,000. It has become common to view and complete financial transactions online or on a mobile device.
Also, the introduction of the Dollar Card for foreign payments has made it easier for clients to use eCommerce. The 2019 Digital Nepal framework for digital banking and payments has also been established by the Nepali government, along with digital lending guidelines.
The main obstacles to the development of digital banking are digital literacy and infrastructural development focused on metropolitan areas. To reduce such setbacks, the public and private sectors must work together.
Further tough obstacles for the adoption of digital banking appear to include security issues and loss aversion. A bottleneck is created by internal data leaks from dishonest personnel as well as external security concerns from hackers.
Moreover, the expansion of digital banking is hampered by the lack of convenient access to banking services in rural regions.
The worldwide pandemic accelerated Nepal's use of digital banking, which has enabled individuals to understand its importance. All of us are aware of the necessity and significance of using digital platforms to digitise our financial records.
In Nepal, the future of digital banking and payment is bright. All have been encouraged to make online payments and develop digital habits thanks to funding allocated to the ICT sector to enhance the digital environment. The implementation of Nepal Payment Switch starting in the following year, VAT benefits on QR Payment, the integration of QR codes into passports, broadband internet via the Rural Telecommunications Development Fund (RTDF), free SIM cards for students over 16, 4G coverage throughout the nation to the local level, portals for e-learning, the integration of government services in the Nagarik app, etc. all play a significant role in Nepal's digitization.