This system, which will be rolled out by Nepal Rastra Bank, is expected to help integrate small businesses and other consumers, according to an IFC statement.[break]
“Developed in collaboration with the World Bank, the project includes building efficient payment mechanisms like mobile money and evolving a comprehensive legal and regulatory framework for the payment system,” says the statement. The South Asia Enterprise Development Facility, managed by IFC, in partnership with the UK government and the Norwegian Agency for Development Cooperation, is supporting the initiative.
“A safe, reliable and efficient national payment system will expand access and support economic growth, boosting growth of small and medium enterprises,” said Madhu Kumar Marasini, joint secretary and chief of the Foreign Aid Coordination Division at the Ministry of Finance.
It is believed strengthening of the legal and regulatory framework will facilitate introduction and adoption of innovative payment products in both urban and rural markets. Promoting electronic payment services will result in greater transparency and make it easier for the under-served to carry out transactions.
“Reforms in the payment system will help attract private investment and bring efficient services to those excluded from the formal banking system,” said Fred Zake, IFC Senior Operations Officer in Nepal.
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