Until a few years ago, even for the payment of ordinary transactions, either a check had to be cut, or cash had to be given. Banks and financial institutions gradually adopting the development in the field of information and technology have gradually promoted electronic transactions.

Electronic transactions, which were like an alternative system before the corona epidemic, have now become a service for common citizens.

Nepal Rastra Bank has promoted electronic payments and transactions in a planned manner. Systems like Mobile Wallet, Connect IPS, RGTS have been put into operation.

Due to this, the common man has added ease and credibility in business. On the other hand, with the increase in electronic transactions, the responsibility of the regulatory body has increased due to the increased interest in security.

According to the details of the financial year 2077-78 published by Nepal Rastra Bank, it can be seen that both the number and volume of electronic transactions have increased.

According to the Central Bank, compared to the end of May 2077, by the end of May 2078, the Real Time Gross Settlement (RGS) launched for Rafsaf for large transactions has seen a significant increase in transactions through Connect IPS and mobile banking. According to the details, compared to May 2077, electronic transactions have increased by four times in May 2078.

According to the bank, in June 2077, there was a transaction worth 16 trillion 38 billion 104 million rupees, and by the end of 2078, there was a transaction worth Rs 21 trillion 12 billion 40 million 67 million rupees.

RGTS, Connect IPS and mobile banking have a large share in it. Looking at the details, it is seen that the volume of business has increased by 412 percent in one year.

According to the Central Bank, there were 696,538 transactions through Connect IPS in June 2077, and by June 2078, it had increased to 216,648.

By the end of June 2077, a total of 37 thousand 297 payments were made through RGTS, and by the end of June 2078, a total of 34 thousand 874 RGTS transactions were made.

Similarly, there has been an increase in transactions based on Quick Response (QR) conducted by Nepal Rastra Bank as a campaign.

At the end of June 2077, there were 195 thousand 16 transactions, but by the end of May 2078, it has increased to 52 thousand 666.

In June 2077, there were 5817 thousand 681 transactions through mobile banking, which increased to over 10 million by the end of May 2078.

The condition of transaction through wallet is also encouraging. In June 2077, there were 10 million one lakh 79 thousand 557 transactions, but in the middle of May 2078, it was limited to 97 lakh 50 thousand 65.

Due to Corona, nationwide lockdown was implemented from March 2067 to July 2077. Similarly, nationwide prohibition was enforced from May 16, 2078 to the second week of June 2077.

Due to Corona, people are not able to physically attend banks and financial institutions to conduct transactions, so common people have preferred electronic transactions.

People’s attraction seems to be increasing because electronic transactions are easy and cheap. According to the details of the Rashtra Bank, the transaction through Connect IPis is more than 1 trillion rupees.

At the end of May 2077, transactions worth Rs 51.336 million were done through Connect IPS, and by the end of May 2078, it had reached Rs 1.58 billion 254 million.

In May 2078, there were 14 lakh 64 thousand transactions, but by June 2078, it has increased to 21 lakh 60 thousand 648 transactions.

According to Nileshman Pradhan, Chief Executive Officer of Nepal Clearing House, there has been an increase in electronic transactions due to the growing awareness of technology among customers and Corona.

He said that due to the meaningful efforts of the government, Nepal Rashtra Bank and other related governmental and non-governmental bodies, the increase in cashless transactions has been achieved.

The amount of people doing business through Connect IPS has increased by 660 percent. Likewise, business through IP has also increased by 85 percent.

Chief Executive Officer Pradhan says that cash transactions can be brought down to a low point if electronic transactions become easy and acceptable in all areas.

He emphasized that all the stakeholders should be interested in making more arrangements for the all-acceptable business, saying that easy arrangements have been made politically and also because of Corona, there has been an increase in general interest in easy transactions.

According to the bank, until the end of June 2077, a total of 589 million rupees worth of payments were made through QR codes, and by the end of May 2078, it had reached 1 billion 968 million rupees. It also seems that Nepali citizens are getting used to using technology.

The Central Bank has launched a campaign to promote the use of QR codes in major vegetable markets, departmental stores and other public places in addition to the Kalimati vegetable and fruit market.

Manoj Gyawali, Deputy General Manager of Nabil Bank, says that the Nepal Rastra Bank has easily made policy arrangements and due to the awareness of citizens, there has been an increase in electronic transactions.

Mentioning that his bank has also promoted the use of QR code as a campaign, he informed that there has been a significant increase in electronic transactions when comparing before and after the corona period.

As the use of QR code increases, it has also had a positive impact on the society. There has been an increase in the use of QR codes in retail shops, vegetable markets and general businesses.

Giving information that banks and financial institutions have arranged to provide loans through phone or digital system, Deputy General Manager Gyawali expressed the belief that 45 lakh more customers will be added through electronic transactions within a short time.

The central bank plans to promote cashless transactions. Central Bank Governor Mahaprasad Adhikari termed this campaign as a great campaign. Private sector banks and financial institutions have also adopted it.

The monetary policy of the current financial year also includes a plan to make the electronic payment system more systematic and effective. The central bank, which is promoting cashless transactions, is going to establish a national payment switch by interoperating with the equipment for that purpose.

In the monetary policy, the financial year 2079-80 is aimed to be celebrated as the year of promotion of electronic payment transactions. For that, the current goal is to emphasize the development of necessary infrastructure and increase awareness.

According to the governor’s official, interoperability between electronic payment devices will be maintained to streamline and document payment transactions within Nepal and Nepal’s own payment card will be used.

Special refinancing will be provided to payment service providers and payment system operators and communication service providers who invest in the development and promotion of the overall ecosystem of electronic payment systems.

For the promotion of such payment transactions, the limits of the transaction through various means will be reviewed, and policy arrangements will be made to maintain the transaction fees at an appropriate level.

Necessary arrangements will be made to facilitate the revenue received by the government and all types of payments through banking and electronic payments.

Likewise, the policy includes encouraging payment service providers and payment system operating organizations to provide electronic payment services to customers of microfinance institutions and cooperatives by increasing the business scope. In order to facilitate the process of loan application to approval in banks and financial institutions, digital loan guidance has been designed and implemented.

In the context of studying the use and feasibility of electronic currency in the world, the policy has taken the aim of studying the feasibility of Central Bank electronic currency in Nepal as well.

In the context of the increasing use of cryptocurrencies and bitcoins around the world, the central bank has moved in the same direction through its policy.

The Nepal Electricity Authority has already started the electronic system for tariff payment a few years ago. Almost 50 percent of the revenue of most of the distribution centers in Kathmandu is through the electronic system. From water bill to air ticket purchase, everything is done electronically.

There has been an increase in the amount of electronic payments from government revenue to the purchase of other daily consumables. Even if there is no cash, life has become easy.

A comfortable environment has been created where you can order food and snacks from your mobile phone at home, office or wherever you need.

Citizen Investment Fund, Employee Provident Fund, Passport and Traffic Police fines can be paid through Connect IPS. Similarly, money can be kept in vehicle purchases, stock market transactions, insurance fees and internet bills, mobile telephone bills and wallets.

Subas Sapkota, Chief Executive Officer of E-Service, says that it is very positive that Nepal Rastra Bank has given high priority to this issue in this year’s monetary policy.

He said that it is a good thing to make a separate arrangement for payment in this year’s monetary policy.

He said that this is a matter that users should be aware of and emphasized that cash transactions should be done through alternative means. He said that this year is more exciting than the previous year, but in the past, cashless transaction was a hobby but now it is a necessity.

“Electric telephones, cumbersome tasks like standing in line to pay various bills are decreasing, time has been saved and because of this, people are becoming technology-friendly day by day, which is a very positive aspect,” he said.

He said that it should be implemented in places where revenue is collected, such as vehicle renewal, driver’s license certificate, and cargo, and it should be explained to the citizens that digital banking is not complicated but easy.

Subas Sapkota, Chief Executive Officer of E-Service, said that it is very positive that Nepal Rastra Bank has given high priority to this issue in this year’s monetary policy.

He said that it is a good thing to make a separate arrangement for payment in this year’s monetary policy.

He said that this is a matter that users should be aware of and emphasized that cash transactions should be done through alternative means. He said that this year is more exciting than the previous year, but in the past, cashless transaction was a hobby but now it has become a necessity.

“Electric telephones, cumbersome tasks like standing in line to pay various bills are decreasing, time has been saved and because of this, people are becoming more technology-friendly day by day, which is a very positive aspect,” he said.

He said that it should also be implemented in places where revenue is collected, such as vehicle renewal, driver’s license certificate, goods receipt, and citizens should be informed that digital banking is not complicated but easy.

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