Mobile Banking in Nepal

Access to credit market and other financial product for low house and small business are very limited in Nepal. Even though , Micro finance institution have played a major role in providing micro credit to the low income household and small business; lack of capital, technology and professionalism have limited the reach of these Micro Finance Institutions and NGOs . Recently, Nepal Rastra Bank (NRB) has decided to allow commercial banks to open a subsidiary micro-credit institution, to provide credit to the low income household. Commercial banks should make a good use of this opportunity and start their own micro credit institution to be the banker to the poor. Micro credit subsidiary of the commercial bank will have the capital ,financial and technical expertise of the their parent company to work efficiently . Given the fragile political condition of Nepal, Commercial banks will be skeptical to built retail brick-and-mortar infrastructure in rural Nepal. So, mobile banking could be the future of banking in small villages and downs. With more than 5.5 million cell phone subscribers and less the one third of the total household with bank accounts the future of mobile banking is very bright in Nepal…