Financial Inclusion in Nepal: Progress and Constraints

Prakash Kumar Shrestha


Financial inclusion is essential for building inclusive financial system which is supposed to be helpful for reducing poverty and inequality in the economy. This paper aims to analyse the progress of financial inclusion in Nepal over time. With various efforts taken in the past, financial inclusion in Nepal has been progressing. Yet, Nepal has inadequate and unequal access as well as very low usage, particularly use of credit and digital medium, indicating a long way ahead to make financial system more inclusive. There are several bottlenecks for expanding financial inclusion such as difficult geography, scatter settlement in villages, illiteracy and high digital knowledge gap in Nepal. By utilizing modern technology and adopting as well as implementing inclusive policies, access to finance has to be increased inclusively. Further, by creating financial awareness and increasing the benefits, the usage of formal financial services should be increased for meaningful financial inclusion. Foreign direct investment and transfer of technology in the areas of Fintech can also expand financial inclusion in Nepal in a profitable way.


Financial Inclusion, Progress, Constraints, Financial Institutions, Nepal

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