Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank has allowed commercial banks to issue RFID-based prepaid toll cards, marking a significant step toward digitizing road user fee collection and reducing cash-based leakages in the country’s transport system.
The central bank, Nepal Rastra Bank, introduced the provision through an amendment to its Integrated Payment System Directive, enabling banks to roll out prepaid instruments specifically designed for toll payments on designated highways and road sections.
Under the new framework, commercial banks will be permitted to issue RFID chip-based prepaid tag cards, which can be used by vehicles to pay road usage fees electronically. The system is expected to replace manual cash payments at toll points, long criticized for inefficiency, delays, and revenue leakages.
The directive states that the cards will be used to collect road user charges from vehicles operating on routes specified by the Government of Nepal, streamlining the collection process across national highways.
The move is expected to deliver multiple structural benefits:
The decision aligns with Nepal’s broader push toward a cashless economy and digital financial infrastructure, where banks are increasingly being leveraged to expand payment ecosystems beyond traditional services.
By integrating toll payments into the formal banking system, regulators aim to strengthen financial inclusion while also enhancing public revenue management.
Commercial banks will now need to develop and deploy the RFID-enabled prepaid systems in coordination with toll operators and government agencies. The rollout is expected to begin on major highways before expanding nationwide.
The reform is particularly significant for Nepal’s growing road network, where efficient toll collection mechanisms are critical for infrastructure financing, maintenance, and long-term transport sector sustainability.
With this policy shift, Nepal joins a global trend of adopting electronic toll collection systems, widely used in developed markets to improve transport efficiency and governance.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
