Author: space4knews

March 24, Kathmandu – With increased use of digital technology in the banking sector, customers now primarily visit bank and financial institution branches only to apply for loans.

While branches still handle cheque and cash transactions, advancements in technology have widely reduced the need for branch visits for most banking operations.

When examining financial access from the branch perspective, every one of the country’s 753 local units has commercial bank branches available.

Nepal Rastra Bank conducted a study on financial access in 2019 (2076 BS), revealing that 67.3% of the country’s population had access to financial services.

Since then, technological advancements have brought banking services to every individual’s mobile device, with the number of deposit accounts now almost double the total population, according to the central bank.

Due to the extensive use of technology, the workload at bank branches has declined. Nepal Rastra Bank Governor Professor Dr. Bishwonath Paudel explains that daily average customers visiting financial institutions for services used to be around 150 per branch but have now decreased to between 20 and 30.

“Expanding branches alone will not suffice,” Paudel said. “Reducing the number of branches to cut costs will help lower the cost of funds and interest rates.”

Consequently, both banks and Nepal Rastra Bank are working in alignment with digitization plans. Efforts are underway to ensure people do not need to physically visit banks or the central bank, he added.

The 2019 study showed that Nepal’s banks and financial institutions had approximately 3,300 people per branch. At that time, the total number of deposit accounts was 27.8 million and loan accounts reached 1.44 million.

Similarly, mobile banking users numbered approximately 8.35 million, and there were about 6.79 million debit cards in circulation.

By mid-February 2026 (2082 BS), the central bank reported significant improvements. Deposit accounts at Class A, B, and C banks and financial institutions rose to 61.85 million, and loan accounts increased to 2.03 million.

By that time, the total number of bank and financial institution branches reached 11,490, while the population per branch dropped to 2,538.

Nepal Rastra Bank spokesperson Gurupasad Paudel confirmed the considerable achievements in digital transactions. He stated, “With at least one bank branch every 10 kilometers, digital transactions are expected to increase further.”

He added that branch closures are appropriate if multiple branches exist in the same location, yet branches remain necessary to maintain financial access and awareness.

The central bank noted that QR payment transactions increased from 855,000 in July 2020 (Ashad 2077) to 46.2 million by mid-February of the current fiscal year.

Mobile banking transactions also rose from 13.7 million five years ago to 67.3 million by mid-February of this fiscal year.

By mid-February, decisive payments via QR amounted to NPR 125 billion, while mobile banking payments totaled NPR 558 billion.

Despite recent central bank policies and growth in digital transactions, the number of branches has decreased. Branch numbers fell starting 2022/23 (2079/80 BS), partly due to mergers and acquisitions.

Three years prior, there were 11,580 branches; currently, they are limited to 11,490.

Financial access will now be reviewed based on payments, service centers, and savings and loan accounts. According to central bank director Sushil Paudel, access can be assessed through payments, savings, credit, and insurance coverage.

While financial access has expanded, quality remains a concern. Paudel stated, “Nearly 90% financial access is reflected by savings accounts, branches, and payment transactions, but borrowing activity is low. There is reluctance to take loans, and improvements in financial resource deployment are limited.”

Financial literacy levels are weak, and consumer protection standards remain inadequate. Since 2019, no comprehensive financial access survey has been conducted.

They have also noted an increase in fraud cases and the need to improve financial awareness. While financial transactions occur normally, easy access to credit is critical, with collateral and loan repayment methods playing major roles.

The QR system has successfully expanded the number of service centers without limitations. In the digital era, this access is not confined to specific locations. Payments can be conveniently made via mobile at shops, effectively turning each store into a financial service center.

“For loans, branch visits are still necessary, but in the future, digital delivery methods will make this possible,” he said. “The central bank is preparing the required policy framework for this.”

March 23, Kathmandu – There is no immediate sign that the military conflict between Israel, the United States, and Iran will end soon. As the nature of the war evolves, both sides have started targeting non-military areas beyond military centers, notably impacting petroleum extraction sites and refineries.

This prolonged conflict has caused disruptions in the global supply chain of petroleum products and gas, projecting a potentially severe fuel crisis for Nepal in the coming days.

Nepal consumes around 45,000 to 46,000 tons of LPG monthly. However, due to inadequate storage, the existing stock in the Nepal Oil Corporation lasts only about one week.

Similarly, the corporation has storage capacity for only 10 days of petrol, 12 to 13 days of diesel, and 15 days of aviation fuel.

Currently, LPG is transported via bullet trucks, while most petroleum products are imported through the Motihari-Amlekhgunj pipeline.

The Ministry of Industry, Commerce and Supplies is closely monitoring the supply issues caused by rising tensions in West Asia and has stated there is no immediate cause for panic in the market.

Netra Prasad Suvedi, the ministry’s spokesperson and joint secretary, explained that while fuel supply is not fully regular, it continues via pipeline, and there is no widespread crisis. The government is currently adopting a “wait and watch” strategy.

He further noted that Indian authorities have imposed some controls on fuel transport via tankers, which has mildly affected supply outside the pipeline.

“Fuel supply cannot be claimed as fully regular. Adequate fuel is not provided for transport through alternative modes beyond the pipeline. India has urged to avoid haste. The situation will depend on whether the Middle East conflict continues or ends,” Suvedi said.

In a previous meeting, the Oil Corporation informed that Indian Oil Corporation (IOC) has a three-month stock of crude oil. The issue appears to be with tanker supplies rather than the pipeline, according to Suvedi.

“Sufficient fuel has not been allotted for other transport means. Additionally, controlled supply in India’s distribution system has caused some impact,” he added.

The Nepal Oil Corporation is incurring significant losses due to rising international market prices. The prices in Nepal are set twice a month based on the IOC’s price list.

The latest price list from India showed a rise of 54 rupees per liter for diesel and 31 rupees for petrol. However, the corporation passed on only a 15-rupee increase for petrol and 10-rupee for diesel to consumers.

Following this, petrol prices rose from 157 to 172 rupees per liter, and diesel from 142 to 152 rupees. Despite a deficit of 216 rupees per LPG cylinder used for cooking, the corporation has not increased its price.

Manoj Thakur, corporation spokesperson, stated that despite comparatively small price hikes, the corporation faced a loss of about 393 crore rupees over the past 15 days.

“Historically, fuel prices were not raised during festivals like Dashain, Tihar, Chhath, and even recently during elections to lessen the burden on the public,” he explained.

Thakur added, “Before festivals and elections, losses were about 10 crore rupees, then 48 crore in two weeks, but now after a single price hike, losses have reached roughly 400 crore rupees within 15 days.”

The ongoing conflict in the Middle East and impacts on refineries have caused prices of refined petroleum products to more than double compared to crude oil prices. Thakur anticipates the losses to increase with upcoming price lists.

Although the Oil Corporation continues regular payments to IOC, the corporation’s cash reserves of around 19.5 billion rupees could be depleted within one and a half to two months if the situation persists.

“If payments to IOC are delayed, India may restrict oil supplies, potentially impacting the market,” the spokesperson warned.

To avert the crisis, the corporation is pursuing a three-pronged strategy. For immediate relief, funds are withdrawn from the Price Stabilization Fund to pay the IOC. However, these funds will last only about one and a half months.

Recognizing the upcoming depletion of the fund, the corporation has requested a backup plan from the ministry regarding when and how to source funds for future oil purchases.

Thakur clarified that the corporation cannot absorb losses alone without profit-sharing.

He stated, “The government should provide tax relief on fuel, the corporation must reduce expenses to bear part of the losses, and consumers should accept some price adjustment.”
“Only through collaboration among these three stakeholders can the burden be fairly balanced, enabling the corporation to manage the crisis.”

The greater the fuel consumption in the market, the larger the corporation’s losses. Due to instability and rising prices in the international energy market, countries like Sri Lanka have taken initiatives to reduce fuel consumption.

Options such as implementing an odd-even system for vehicles to cut fuel use are under discussion in Nepal, but no decision has yet been made, according to the ministry.

Spokesperson Suvedi confirmed ongoing discussions between the Nepal government and the Oil Corporation on measures to reduce the fuel crisis.

Suvedi said, “Discussions have included focusing on domestic energy sources, introducing odd-even vehicle restrictions, and promoting induction stoves, but no decisions have been finalized.”

Currently, there are no long queues for fuel in the market, so the government prefers to monitor international developments before making necessary decisions.

“Though discussions continue, the situation does not yet warrant a final decision. People are a bit anxious, hence rumors have spread,” Suvedi clarified.

While there have been some minor disruptions in transporting food grains and other goods, business representatives state no serious problems have occurred.

In response to energy conservation, the Sri Lankan government has switched to a four-day workweek and replaced weekly public holidays, while implementing strict rationing of vehicles under a national fuel pass system.

Similarly, Asian countries including Pakistan, the Philippines, Thailand, South Korea, and China have adopted various measures to cope with the energy crisis.

Senior stakeholders in Nepal emphasize the need to adopt similar strategies.

Former Commerce Secretary Purushottam Ojha suggested both short- and long-term solutions based on prior experience.

Ojha recalled the crisis during 2008 when oil prices reached $147 per barrel, noting that using the Price Stabilization Fund was appropriate for immediate loss management but did not provide a sustainable solution.

He suggested leveraging high-level political initiatives with India to secure credit oil supplies, as done previously, as a possible current option.

He also mentioned the practice of borrowing from the employees’ provident fund and citizen investment fund for fuel purchases, with repayments made when prices normalize.

Ojha advised the government to take firm steps to reduce fuel imports and consumption, institute odd-even vehicle usage regulations, promote electric vehicles, and expand public transportation usage.

Finally, while hoping for a swift resolution to the international conflict, he noted that damage to oil infrastructure would require time to stabilize supply and urged immediate discussions on alternatives to mitigate the crisis.

March 23, Kathmandu: Due to the partial influence of western and local winds, rainfall has been observed today in Kathmandu and several other districts.

Kathmandu received 1.2 millimeters of rain in the last hour, with light rain also reported in other districts. According to the Department of Hydrology and Meteorology, some areas have experienced hail, snowfall, and strong winds.

Data from various rainfall measurement centers shows that in the recent hour, the highest rainfall of 9.4 millimeters was recorded in Jhapa. Additionally, light rain was reported in Taplejung, Bhojpur, Nuwakot, Lamjung, Gorkha, Kaski, and Kalikot. In the past three hours, Tanahun recorded 24.6 millimeters and Jhapa 12.2 millimeters of rainfall.

According to Dayankar Kayastha, Information Officer at the Meteorological Department, the hill and mountainous regions, including Koshi Province, generally have cloudy skies, while other areas are partly cloudy.

The department’s bulletin issued at 6:00 PM today states that some locations in Koshi, Bagmati, Gandaki, Karnali, and Sudurpashchim provinces are experiencing light rain or snowfall accompanied by thunder and lightning.

The department further expects mostly cloudy conditions on Wednesday in the hill and mountain regions of Koshi, Bagmati, Gandaki, and Lumbini provinces, whereas partly cloudy conditions will prevail in other hill and mountainous areas. The Terai region is expected to remain mostly clear.

There is a chance of light rain or snowfall accompanied by thunder and lightning in some hilly and mountainous areas of Koshi and Gandaki provinces and one or two locations in other provinces.