Under the project developed in collaboration with the World Bank, IFC says it will help Nepal build efficient payment mechanisms like mobile money and evolve out a comprehensive legal and regulatory framework for the payment system.[break]
The project is considered important as it is expected to help small businesses and consumers integrate into the economy. “A safe, reliable and efficient national payment system will expand access and support economic growth, boosting growth of small and medium enterprises,” a press statement quoted Madhu Kumar Marasini, joint secretary of the finance ministry as saying.
South Asia Enterprise Development Facility, managed by IFC, the UK government and the Norwegian Agency for Development Cooperation are supporting the initiative, says the press statement.
“Strengthening the legal and regulatory framework will support introduction and adoption of innovative payment products in both urban and rural markets. By promoting electronic payment services to the under-served, the initiative will result in greater ease and transparency in undertaking transactions,” states the release. Nepal Rastra Bank would be implementing the roll-out.
Reforms in the payment system would help Nepal attract private investment and bring efficient services to those excluded from the formal banking system, the press statement quoted Fred Zake, senior operations officer at IFC in Nepal, as saying.
IFC, in collaboration with the World Bank, has been pursuing an integrated approach toward developing retail payment systems, utilizing technology to expand reach of financial services.
The World Bank in particular has been working with public authorities across the world to support comprehensive payment reforms and collaborates with standard-setting bodies in the development and application of standards in the area of payment systems.
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