Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Electronic transaction, which used to be an alternative system before the onset of Covid-19 pandemic, has now become an essential service to the general public. Nepal Rastra Bank has systematically promoted electronic payments and transactions while systems like Mobile Wallet, Connect IPS, Real Gross Time Settlement (RGTS) have been brought into operation.
It has also added ease and reliability to the business for the general public. With the increase in e-transactions, the responsibility of the regulatory body regarding security has been added.
As per the data of the Fiscal Year 2077/78 made public by Nepal Rastra Bank, both the number and volume of electronic transactions have increased. According to the central bank, there has been a significant increase in transactions through RGTS, Connect IPS and mobile banking.
According to the central bank, electronic transactions worth Rs 1.63 trillion took place in May 2020 while there has been electronic transaction of Rs 2.11 trillion in May 2021. It has a large share of RTGS, Connect IPS and mobile banking.
Transactions based on Quick Response (QR) code has also increased. While there was 195, 016 QR transactions in June 2020, there were 502,666 such transactions in May 2021.
In May 2020, transaction through mobile banking was done 5.81 million times which increased to more than 11 million in mid-June 2021.
The general public has also given priority to electronic transactions as they were not able to do transaction physically by visiting banks and financial institutions during the Covid-19 pandemic. The attraction of people toward electronic transaction has increased as it has become easier and cost effective.
According to the NRB, the transaction through Connect IPS is more than Rs 100 billion.
Transactions of Rs 51.30 billion through Connect in mid-June 2020 has increased to Rs 157 billion by mid-June 2021. While there were 1.46 million transactions in the previous year, it has increased to 2.16 million this year.
Transactions through IPS have also increased by 85 percent. Pradhan says that cash transactions can be reduced to a minimum point if electronic transactions are made easy and acceptable in all sectors.
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