Payment Systems Dashboard
Nepal Rastra Bank — Monthly Payment System Data
All Indicators — Transaction Volume
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About These Indicators
Access Infrastructure
ATM Machines (Terminals)
The total number of automated teller machines deployed across Nepal by commercial banks, development banks, and other financial institutions serves as a fundamental barometer of the nation's physical banking infrastructure for cash distribution. This metric encompasses all ATM terminals whether on-site units within bank branches or off-site standalone machines in public areas such as shopping malls, transportation hubs, university campuses, hospitals, and market centers throughout Nepal's seven provinces. Nepal Rastra Bank as the central monetary authority mandates specific ATM deployment ratios for licensed financial institutions as part of its branch licensing and financial access requirements. The central bank classifies ATMs under its payment system oversight framework and requires quarterly reporting from all banks and financial institutions on ATM inventory, uptime statistics, and cash replenishment cycles that inform monetary policy formulation and financial inclusion strategy development. The importance of ATM infrastructure in Nepal's financial system is critical given that cash remains the dominant medium of exchange despite rapid advances in digital payment technologies. The majority of Nepali households still rely on physical currency for daily transactions making ATMs the primary point of access to the formal financial system. In a country where banking penetration has historically been low particularly outside Kathmandu Valley and major urban centers every new ATM installation extends financial services to previously underserved populations. The network provides essential cash distribution supporting retail commerce, salary disbursements, remittance payouts, and emergency liquidity for millions of Nepalis. During economic disruptions such as the 2015 earthquake, COVID-19 lockdowns, and seasonal spikes during Dashain and Tihar festivals the resilience of the ATM network directly impacts access to essential financial services. For Nepal's tourism industry attracting over one million visitors annually, ATMs with international card acceptance serve as critical infrastructure for foreign visitors. The economic significance extends beyond convenience to encompass financial stability considerations with aggregate withdrawal patterns serving as real-time indicators of consumer spending and informal economic activity. Historical trends in ATM deployment mirror Nepal's financial sector liberalization that began in the 1990s. The earliest ATMs appeared in Kathmandu in the mid-1990s introduced by joint venture commercial banks such as Nabil Bank and Standard Chartered Bank Nepal which brought international banking technology to the domestic market. Through the 2000s ATM growth concentrated in urban areas and along major highway corridors connecting Kathmandu to Pokhara, Chitwan, and the eastern development region. The period from 2010 to 2020 witnessed the most dramatic expansion as banking sector consolidation and commercial bank branch growth accelerated under NRB's financial access directives requiring banks to establish branches in underserved local levels as a condition for opening new urban branches. This policy created a cascade of ATM installations in previously unserved rural locations. By fiscal year 2079-80 BS the total number of ATMs crossed several thousand units across all seven provinces with highest density in Bagmati Province and lowest in Karnali Province. The growth rate has moderated as digital payment adoption reduces demand for ATM expansion and as banks optimize physical networks through strategic rationalization. The regulatory framework requires NRB approval for new ATM locations with security standards including CCTV, lighting, secure booth construction, and anti-money laundering compliance. The Nepal Bankers Association facilitates inter-operability through the national ATM switch operated by Nepal Clearing House Limited enabling customers of any bank to use ATMs of other member banks. Looking forward ATMs evolve with cardless cash withdrawals, biometric authentication, and QR payment integration suggesting a continued role as hybrid access points combining traditional cash services with digital self-service capabilities particularly in rural areas where alternative access points remain limited.
Branchless Banking
The count of branchless banking agents and banking correspondents operating across Nepal represents one of the most transformative innovations in extending financial services to previously unbanked and underbanked populations throughout the country's diverse geography. Branchless banking encompasses a network of authorized agents typically local shopkeepers, cooperative members, or community-based entrepreneurs equipped with point-of-transaction devices or mobile applications enabling basic banking services on behalf of licensed financial institutions. These agents perform cash-in and cash-out functions, facilitate account opening, process fund transfers, accept loan repayments, and collect deposits in areas where traditional bank branches would be economically unviable due to low population density, poor infrastructure, or difficult terrain. Nepal Rastra Bank's branchless banking guidelines categorize these arrangements under alternative delivery channels requiring licensed banks to maintain clear agency agreements and implement robust monitoring mechanisms. The importance of branchless banking to Nepal's financial system is profoundly tied to the country's geographic characteristics where more than sixty percent of the population resides in rural areas many in communities lacking paved roads, reliable electricity, or telecommunications connectivity. The agent-based model overcomes these barriers by leveraging existing local commercial networks and trust relationships where the local shopkeeper or cooperative leader already serves as an informal financial intermediary. By formalizing these existing relationships within the framework of licensed banking correspondents, NRB has created a mechanism that respects Nepal's social capital while bringing informal financial activities into the regulated banking system. This is particularly significant for remittance-dependent households given that remittance inflows account for approximately twenty-five percent of Nepal's GDP making it one of the most remittance-dependent economies in the world. Branchless banking agents facilitate remittance payouts in remote communities enabling recipient families to access funds without traveling to district headquarters or urban centers thereby reducing both time and cost burdens significantly. For migrant-sending households in far-western and mid-western Nepal where male out-migration rates are among the highest, the availability of branchless banking services locally can mean the difference between accessing remittance funds within hours versus traveling for multiple days. Historical trends in branchless banking development trace back to the early 2010s when pioneering commercial banks experimented with agent models inspired by successful implementations in Bangladesh through bKash and Kenya through M-Pesa. Nepal Rastra Bank formally recognized branchless banking through its 2011 unified directives establishing the legal foundation for banks to engage third-party agents for service delivery. The real acceleration began around 2015 when NRB issued comprehensive branchless banking guidelines providing clear operational parameters, transaction limits, and reporting requirements. Major commercial banks including Nepal Bank Limited, Rastriya Banijya Bank, Agricultural Development Bank, Nabil Bank, and Global IME Bank launched aggressive agent recruitment drives targeting districts with low banking penetration. The entry of mobile wallet providers such as eSewa, Khalti, and IME Pay into the agent space added further momentum as these non-bank payment service providers established their own agent networks complementing bank-led models. The COVID-19 pandemic served as a powerful catalyst as lockdowns and social distancing measures made travel to bank branches difficult while highlighting the essential nature of local financial access points. NRB's pandemic-era policy relaxations including temporary increases in transaction limits and simplified agent onboarding further accelerated network expansion. By fiscal year 2079-80 the total number of branchless banking agents across Nepal had grown substantially with presence in all seven provinces though significant gaps remain particularly in high Himalayan districts. The regulatory framework requires banks to submit detailed proposals including agent selection criteria, operational procedures, and risk management frameworks for NRB approval. Looking forward the sector faces opportunities through QR code interoperability enabling enhanced agent service offerings beyond basic cash-in and cash-out to include digital onboarding, credit assessment, and insurance distribution.
ConnectIPS Users
Registered users of ConnectIPS, Nepal's interbank payment system operated by Nepal Clearing House Limited known as NCHL, represent a critical metric in measuring the adoption of electronic fund transfer capabilities among the country's banking population. ConnectIPS serves as a centralized interbank payment switch enabling real-time electronic fund transfers between accounts held at different banks and financial institutions across Nepal. When a user registers for ConnectIPS they create a linkage between their bank account and the system through which they can initiate transfers to accounts at any participating bank using the recipient's bank account number and the receiving bank's ConnectIPS identifier. The registration process typically involves a one-time setup through the user's bank where they provide consent for ConnectIPS access and establish authentication credentials that may include a username, password, and transaction confirmation codes delivered through SMS or mobile application notifications. Nepal Rastra Bank recognizes ConnectIPS as a systemically important payment system given its role in facilitating retail payment interoperability across the banking sector and has designated NCHL as the licensed operator under the Payment and Settlement Act 2072. The importance of ConnectIPS user adoption to Nepal's financial system lies in its role as the foundational infrastructure for interbank retail payment interoperability in the country. Before ConnectIPS became operational in 2014 transferring money between accounts at different banks in Nepal was a cumbersome process that typically required the sender to withdraw cash from their own bank, physically transport it to the recipient's bank, and deposit it into the destination account. Alternatively users could use bank drafts which required a visit to the bank branch, payment of draft issuance fees, and then physical delivery of the draft to the recipient for encashment. This friction in interbank fund transfers imposed significant costs on the economy including time spent on travel and queuing, direct financial costs through fees and commissions, and indirect costs through delayed settlement of obligations affecting business operations and personal financial management. ConnectIPS eliminated these frictions by creating a direct electronic channel for interbank transfers that operates in real time with settlement occurring through NCHL's clearing and settlement infrastructure. For Nepal's large remittance-dependent population representing approximately twenty-five percent of GDP, ConnectIPS enables recipient families to receive domestic fund transfers directly into their bank accounts regardless of which bank they use thereby supporting distribution of the substantial remittance flows that sustain millions of Nepali households. For businesses ConnectIPS facilitates supplier payments, salary disbursements, and inter-company transfers across multiple banking relationships without requiring each transacting party to maintain accounts at the same institution. Historical trends in ConnectIPS user registration reflect the classic adoption curve of an infrastructure-dependent technology requiring both supply-side participation by financial institutions and demand-side adoption by end users. During its initial years from 2014 to 2017 ConnectIPS user growth was modest as banks gradually integrated with the NCHL switch and users became aware of the service's availability. The registration process during this period often required in-person visits to bank branches creating a significant barrier to mass adoption. The turning point came around 2017-18 when NRB's policy directives encouraging digital payment adoption combined with aggressive marketing campaigns by banks and NCHL to drive registration numbers upward. The launch of mobile banking applications that integrated ConnectIPS functionality directly into the user experience significantly reduced the friction of registration and transaction initiation. By the end of fiscal year 2076-77 BS ConnectIPS had crossed significant user milestones and was processing millions of transactions annually reflecting growing mainstream acceptance. The COVID-19 pandemic from 2020 to 2022 acted as a powerful accelerator with lockdowns, social distancing, and fear of virus transmission through cash handling driving a surge in both new registrations and transaction volumes. NRB's pandemic-era policy measures including fee waivers on digital transactions and temporary increases in transaction limits provided additional incentives for ConnectIPS adoption. The growth trajectory has continued post-pandemic as habits formed during lockdowns persisted and as banks integrated ConnectIPS capabilities into increasingly seamless digital banking experiences. The regulatory framework operates under the Payment and Settlement Act 2072 with NCHL licensed and supervised by NRB subject to ongoing oversight including governance standards, operational risk management requirements, financial stability assessments, and consumer protection obligations. Looking forward ConnectIPS faces both opportunities and challenges in an increasingly diverse payment landscape that now includes instant payment systems, QR-based payments, and mobile wallet ecosystems offering alternative fund transfer mechanisms. NCHL's strategy includes integration with the national payment switch, enhanced functionality for bulk payments and direct debit arrangements, and expanded interoperability with non-bank payment service providers ensuring ConnectIPS remains relevant as Nepal's digital payment ecosystem continues to evolve.
Credit Cards
The number of active credit cards issued by banks and financial institutions in Nepal serves as a sophisticated indicator of consumer credit market development, formal financial system engagement, and the evolution of spending patterns among the country's urban and emerging middle-class populations. Credit cards represent a revolving credit facility where the issuing institution extends a pre-approved credit limit to the cardholder allowing them to make purchases, withdraw cash, and conduct transactions up to that limit with the obligation to repay the outstanding amount either in full at the end of the billing cycle or in installments subject to interest charges on the carried balance. Nepal Rastra Bank regulates credit card issuance and operations under its unified directives covering eligibility criteria, minimum income requirements, credit limit determination, interest rate ceilings, fee structures, and consumer protection standards requiring financial institutions to conduct proper credit assessments before issuing cards and maintain adequate provisioning against credit card exposures. NRB's regulatory framework distinguishes between primary cardholders, supplementary cards issued to family members, and corporate credit cards each subject to different underwriting standards and usage parameters. The importance of credit card adoption to Nepal's financial system extends across multiple dimensions of financial sector development and consumer behavior. For the financial system credit cards generate fee income through merchant discount rates, interest income through revolving balances, and ancillary revenue through annual fees and value-added services. The credit card ecosystem drives merchant payment infrastructure development with deployment of point-of-sale terminals, payment gateway integrations, and card acceptance networks benefiting the broader digital payment landscape. For consumers credit cards provide access to formal credit that may not be available through traditional loan products particularly for salaried employees and young professionals who may lack the collateral or documentation required for other forms of borrowing. The credit card's revolving facility allows consumers to manage cash flow fluctuations, make essential purchases during temporary liquidity shortfalls, and build credit histories facilitating access to other financial products including home loans, auto loans, and education financing. For merchants credit card acceptance enables serving customers who prefer card payments, reduces the costs and risks associated with cash handling, and provides access to transaction data informing business planning. For the broader economy credit card adoption supports formalization of economic activity by creating electronic transaction trails expanding the documented economy and strengthening the tax base. The credit card ecosystem also supports Nepal's tourism sector by enabling international visitors to use their foreign-issued cards at Nepali merchants, hotels, restaurants, and service providers thereby facilitating tourism expenditure capture within the formal financial system. Historical trends in credit card adoption in Nepal reflect a pattern of gradual expansion followed by more recent acceleration driven by demographic shifts, banking sector competition, and digital payment ecosystem development. Credit cards were introduced in Nepal in the early 1990s by joint venture commercial banks that brought international banking practices to the domestic market. Initially credit card issuance was limited to high-net-worth individuals, senior corporate executives, and established business owners who could meet strict income and collateral requirements. The credit card market remained relatively niche through the 1990s and early 2000s with total card issuance growing slowly as limited merchant acceptance constrained card utility and high interest rates discouraged widespread adoption. The period from 2010 to 2020 witnessed significant market development as increasing banking sector competition led banks to seek new revenue streams through credit cards, as expansion of the formal employment sector created a growing pool of salaried professionals meeting creditworthiness criteria, and as improvements in payment infrastructure including point-of-sale terminal networks and e-commerce payment gateways expanded card utility. More recently the entry of new players and lifestyle-focused credit card products with rewards programs, travel benefits, and shopping discounts have stimulated consumer interest. The COVID-19 pandemic created both headwinds and tailwinds for credit card adoption as economic uncertainty led to tighter underwriting standards and lower consumer spending while simultaneously accelerating the shift away from cash toward electronic payment methods. The regulatory framework operates under NRB's Unified Directives which mandate minimum eligibility criteria including age requirements and income thresholds, set maximum interest rates on revolving balances to protect consumers from usurious pricing, and regulate fee structures. Consumer protection provisions include requirements for clear communication of terms, fraud monitoring systems, zero-liability protection for unauthorized transactions, and complaint handling mechanisms. Looking forward the credit card market in Nepal faces competition from digital wallet services offering buy-now-pay-later functionality and QR-based payment systems but the credit card's unique combination of credit facility, payment convenience, and value-added benefits positions it to remain significant as banks enhance their offerings with innovative features and loyalty programs.
Debit Cards
The total count of active debit cards linked to savings and current accounts across Nepali banks and financial institutions represents the most widely held non-cash payment instrument in the country's financial system. Unlike credit cards which extend a credit facility to the cardholder, debit cards facilitate direct electronic access to the cardholder's own deposited funds enabling purchases at merchant locations, cash withdrawals from automated teller machines, and online transactions up to the available balance in the linked account. Nepal Rastra Bank classifies debit cards under retail payment instruments and requires licensed financial institutions to comply with specified standards regarding card issuance, transaction processing, security features including EMV chip implementation that replaced older magnetic stripe technology to enhance security against counterfeiting and skimming attacks, and consumer protection regulations. The ubiquity of debit cards as the most basic and widely distributed electronic payment instrument makes their adoption count a fundamental indicator of financial inclusion and access to digital payment infrastructure in the country. The importance of debit cards to Nepal's financial system is anchored in their role as the primary bridge between the formal banking system and everyday economic transactions. When a bank customer opens a savings or current account the debit card is typically the first and most tangible electronic payment instrument they receive providing instant access to their deposited funds through the national ATM network and at any merchant that maintains card acceptance infrastructure. For Nepal's large population of account holders who use their bank accounts primarily for salary deposits, remittance receipts, and savings accumulation, the debit card represents the key mechanism through which they convert electronic account balances into usable purchasing power. The debit card ecosystem supports the entire ATM infrastructure in Nepal as the primary credential that authenticates a customer's identity and authorizes cash withdrawal transactions at ATMs across the country. Beyond cash access debit cards facilitate merchant payments at point-of-sale terminals in retail stores, restaurants, hotels, and service establishments thereby supporting the gradual reduction of cash dependence in retail transactions. The introduction of international debit card schemes such as Visa and Mastercard through Nepal's commercial banks has enabled Nepali cardholders to use their debit cards for transactions abroad and for e-commerce purchases from international merchants supporting Nepal's integration with the global digital economy. Historical trends in debit card adoption in Nepal trace the broader trajectory of the country's banking sector development and financial inclusion progress. Debit cards were introduced in the Nepali market in the late 1990s and early 2000s as commercial banks began deploying ATM networks that required a card-based access mechanism. The initial debit cards were simple ATM-only cards providing cash withdrawal functionality at the issuing bank's own ATM network without inter-bank operability. The expansion of Nepal Clearing House Limited's Shared Cash Transaction network in the early 2000s dramatically enhanced debit card utility by enabling customers of one bank to use ATMs of other participating banks effectively multiplying the usefulness of each card. The subsequent introduction of point-of-sale debit functionality through Visa and Mastercard converted debit cards from simple ATM access tools into full-fledged payment instruments usable at merchant locations. The period from 2010 witnessed explosive growth in debit card issuance as NRB's financial inclusion policies drove banking sector expansion, as government salary and social security payment digitization required beneficiaries to hold bank accounts with debit card access, and as commercial banks distributed debit cards as a standard account feature. The issuance of RuPay debit cards through Nepal's partnership with India's National Payments Corporation added a domestic card scheme alternative reducing interchange costs and supporting Nepal's payment sovereignty objectives. The regulatory framework governing debit card operations is established through NRB's Unified Directives covering the lifecycle of debit card products including mandatory EMV chip implementation, transaction monitoring systems, and consumer protection regulations governing cardholder liability for unauthorized transactions. Looking forward debit cards are evolving with tokenization technologies, contactless functionality enabling tap-and-pay transactions, and continued expansion of merchant card acceptance infrastructure including affordable point-of-sale solutions for small merchants.
ECC Members
Institutions that are members of the Electronic Cheque Clearing system operated by Nepal Clearing House Limited represent formal financial institutions participating in Nepal's digital cheque processing and settlement infrastructure. The Electronic Cheque Clearing system known as ECC enables digital transmission of cheque images and data between member banks for clearing and settlement replacing traditional physical transportation of paper cheques between branches. When a customer deposits a cheque drawn on another bank the receiving bank captures the cheque image and transmits it electronically through the ECC system to the paying bank which verifies the cheque details, confirms the availability of funds, and processes the payment. This digital clearing process reduces the time required for cheque settlement from multiple days in the physical system to a matter of hours while simultaneously reducing the risks of cheque loss during transportation, fraud through document tampering, and errors in manual data entry. Nepal Rastra Bank's oversight of the ECC system falls under its payment system supervision mandate with NCHL designated as the system operator responsible for technical operations, membership management, rule enforcement, and settlement arrangements. The importance of ECC membership to Nepal's financial system lies in the continued significance of cheques as a payment instrument for many transaction categories despite rapid growth of electronic alternatives. Cheques in Nepal remain widely used for business-to-business payments, government disbursements, institutional fund transfers, rent and lease payments, education fee remittances, and legal settlement payments. The cheque instrument offers several characteristics sustaining its usage including a physical documented record of payment, the ability to post-date payments for future effectiveness, the facility to stop payment if circumstances require, and widespread familiarity with cheque handling procedures across all age groups and business sectors. The ECC system addresses the principal inefficiencies of paper-based cheque processing by eliminating the need for physical cheque transportation across Nepal's challenging geography. Before ECC implementation a cheque drawn on a bank in one city and deposited in another required physical transportation through courier services that added days to the clearing cycle and exposed cheques to the risk of loss or damage during transit. The ECC system compresses this cycle to near real-time processing with cheque images transmitted electronically and funds typically available to the depositor within one business day. For businesses that receive large volumes of cheques as payment from customers, faster clearing directly improves cash flow and working capital management. For the banking sector ECC reduces operational costs associated with manual cheque processing, courier transportation, exception handling, and fraud investigation. Historical trends in ECC membership trace the modernization journey of Nepal's payment infrastructure from a predominantly paper-based system toward increasing digitization. The ECC system was conceptualized and developed by NCHL in partnership with NRB as part of a strategic initiative to modernize the country's payment infrastructure and reduce the systemic risks associated with the manual cheque clearing process. The system was launched in the early 2010s with an initial membership comprising the largest commercial banks that had the technical infrastructure and operational capacity to implement cheque image capture and transmission capabilities. The adoption process required participating banks to invest in cheque scanner hardware at processing centers, implement software systems for image capture and data transmission, train staff on electronic clearing procedures, and modify internal systems to accommodate accelerated clearing timelines. Membership expanded progressively as more banks recognized the operational and competitive benefits of electronic clearing and as NCHL simplified technical integration requirements to accommodate smaller financial institutions. The transition from physical to electronic cheque clearing received a significant boost from NRB policy directives that established timelines for the phase-out of physical cheque clearing and mandated ECC adoption as a condition for continued participation in the national cheque clearing system. By the late 2010s ECC membership had expanded to include the majority of commercial banks, development banks, and finance companies with the member base stabilizing at near-universal coverage among licensed financial institutions that engage in cheque-related transactions. The regulatory framework operates under the Payment and Settlement Act 2072 with ECC designated as systemically important payment infrastructure subject to comprehensive regulatory supervision including governance requirements for NCHL, operational reliability standards, and contingency planning requirements. Looking forward the ECC system faces the challenge of maintaining relevance as cheque usage gradually declines in favor of electronic alternatives including ConnectIPS, faster payment systems, and mobile banking transfers. Despite this secular decline, the ECC system remains essential infrastructure for processing the substantial cheque volumes that continue to be generated by business transactions, government payments, and institutional fund movements. NCHL's strategy includes enhancing functionality with positive pay services, integration with mobile banking for remote cheque deposit capture, and expanded data analytics capabilities providing member institutions with insights into cheque clearing patterns.
IPS Members
Participants connected to the Interbank Payment System, Nepal's high-value payment settlement infrastructure, represent the core of the country's financial system interbank connectivity. IPS serves as the primary channel through which banks and financial institutions settle high-value obligations among themselves including interbank loans, money market transactions, securities settlement, foreign exchange trades, and large corporate payments. The system operates on a real-time gross settlement basis meaning that each transaction is settled individually and immediately rather than being netted against other transactions thereby eliminating settlement risk and ensuring finality of payment for each transfer. IPS is operated by Nepal Clearing House Limited under the supervision of Nepal Rastra Bank and constitutes one of the most systemically important financial infrastructures in the country. Membership in IPS is restricted to licensed banks and financial institutions that meet specific eligibility criteria established by NCHL and approved by NRB including minimum capital requirements, technical infrastructure standards, operational capacity assessments, and compliance with governance requirements. The importance of IPS membership to Nepal's financial system and economy fundamentally relates to the system's role in ensuring the safety and efficiency of high-value interbank transactions that underpin the stability of the entire financial sector. In any modern economy interbank payments constitute the backbone of the financial system as they represent the settlement of obligations that arise from the everyday activities of banks, corporations, and financial institutions. When one bank borrows from another in the interbank money market, when a bank purchases government securities from a primary dealer, when a foreign exchange transaction is settled between two banks, or when a corporation makes a large tax payment to the government that must be credited to the state's account at the central bank, these transactions require final and irrevocable settlement between the participating financial institutions. IPS provides the infrastructure through which these settlements occur with the critical property of finality meaning that once a transaction is processed through IPS it cannot be unwound or reversed thereby eliminating the systemic risk that would arise if one bank's failure to settle its obligations could cascade through the financial system. The real-time gross settlement feature is particularly important for financial stability because it prevents the accumulation of settlement exposures between banks that could become problematic if one participant were to default. Historical trends in IPS membership reflect the evolution of Nepal's financial sector from a system where interbank settlements were managed through bilateral arrangements and manual processes to a modern infrastructure-based system with standardized participation, processing, and settlement mechanisms. Before the establishment of IPS interbank settlements in Nepal were conducted through bilateral exchange of instruments often using cheques drawn on the central bank or through manual settlement arrangements that lacked the efficiency and risk management properties of a formal real-time gross settlement system. The development of IPS was initiated by NRB and NCHL as part of a comprehensive payment system modernization program that aimed to bring Nepal's interbank settlement infrastructure to international standards. The system was designed in accordance with the Bank for International Settlements' Committee on Payment and Settlement Systems recommendations for real-time gross settlement systems. The initial membership at launch comprised the largest commercial banks that held settlement accounts at NRB and processed the majority of interbank transactions. Membership expanded progressively as more banks recognized the operational benefits of real-time settlement and as NRB encouraged broader participation through policy measures and regulatory guidance. The growth in IPS membership over the years reflects the overall development of Nepal's banking sector including the increasing number of licensed commercial banks, the expansion of development banks and financial institutions that require interbank settlement services, and the recognition of IPS participation as a prerequisite for full engagement in the interbank money market. The regulatory framework governing IPS membership operates under the Payment and Settlement Act 2072 which provides the legal foundation for NRB's oversight of payment and settlement systems with IPS designated as a systemically important payment system subject to enhanced regulatory supervision. Looking forward the IPS system faces the challenge of adapting to the evolving landscape of financial technology including the potential emergence of distributed ledger-based settlement systems, the increasing volumes of retail payments that may require more efficient settlement mechanisms, and the growing expectations for extended operating hours and faster processing cycles. NCHL and NRB are exploring enhancements including the implementation of liquidity saving mechanisms that optimize the use of participant settlement balances and the extension of operating hours to support longer settlement cycles.
Internet Banking Customers
The number of registered internet banking users in Nepal represents the segment of the banking population that has adopted web-based digital channels for conducting financial transactions and managing their banking relationships. Internet banking also referred to as online banking enables customers to access their bank accounts through secure web portals on personal computers, laptops, and tablets to perform a wide range of financial activities including account balance inquiries, fund transfers to own accounts and third parties, bill payments, mobile recharge, loan applications, fixed deposit management, and statement downloads. Nepal Rastra Bank regulates internet banking services under its unified directives governing electronic banking and requires licensed financial institutions to implement specific security measures, customer authentication protocols, transaction limits, and consumer protection standards for their online banking platforms. The regulatory framework addresses technology risk management including requirements for secure socket layer encryption, two-factor authentication, session timeouts, and fraud monitoring systems that protect customers from unauthorized access and transaction fraud. The importance of internet banking user adoption to Nepal's financial system lies in the channel's role as a comprehensive digital banking platform enabling customers to conduct a wide spectrum of financial transactions without visiting physical bank branches. For the banking sector internet banking represents a strategic channel that reduces operational costs by shifting transaction processing from expensive branch teller infrastructure to lower-cost digital self-service platforms. Each transaction processed through internet banking reduces the marginal cost of service delivery compared to branch-based processing enabling banks to serve a larger customer base without proportional expansion of physical infrastructure. For customers internet banking provides convenience and time savings by eliminating the need to travel to bank branches, wait in queues, and conduct transactions during limited branch operating hours. The ability to access banking services at any time from any location with internet connectivity is particularly valuable in Nepal's context where geographic barriers and limited branch networks in rural areas create significant access challenges. For businesses internet banking platforms provide essential cash management capabilities including bulk payment processing, payroll management, supplier payment scheduling, and account reconciliation tools that support efficient working capital management. For government agencies internet banking supports the digitization of tax collection, fee payments, and other government revenue activities by enabling electronic payment channels that reduce cash handling costs and improve transparency. Historical trends in internet banking adoption in Nepal trace the gradual but accelerating digitization of banking services from the early 2000s when the first internet banking platforms were introduced by technologically advanced commercial banks. The early internet banking offerings were basic information-only platforms providing account balance inquiry and transaction history viewing without transaction initiation capabilities. The introduction of transactional internet banking in the mid-2000s enabled customers to conduct fund transfers and bill payments online representing a significant milestone in digital banking development. Adoption during this early period was constrained by several factors including limited internet connectivity particularly outside Kathmandu Valley, low personal computer penetration in households, concerns about online security and fraud risks, and preference for traditional banking channels. The expansion of broadband internet infrastructure from the late 2000s onward, the sharp increase in smartphone adoption that provided alternative digital access channels, and growing digital literacy among younger generations all contributed to accelerating internet banking adoption. The period from 2015 to 2020 witnessed the most rapid growth in internet banking registrations as banks invested in improving their online banking platforms, as competition drove banks to offer differentiated digital services, and as growing awareness of digital financial services expanded the addressable market. The COVID-19 pandemic from 2020 to 2022 served as an unprecedented catalyst for internet banking adoption as lockdowns, social distancing measures, and health concerns drove massive shifts in banking channel preferences toward digital alternatives. Banks reported record increases in internet banking registrations during this period as previously reluctant customers were compelled by circumstances to register for and use online banking services. The regulatory framework mandates minimum security standards including encryption technologies, firewalls, intrusion detection systems, and regular security audits. Customer authentication requirements specify the use of multi-factor authentication combining passwords with one-time passwords or biometric verification. Transaction limits are calibrated to balance customer convenience with fraud risk management. Consumer protection provisions require clear disclosure of terms, transaction notifications through SMS or email, liability frameworks protecting customers from unauthorized transaction losses, and responsive customer support channels. Looking forward the role of internet banking is being reshaped by the rapid adoption of mobile banking applications with banks developing unified digital banking platforms providing consistent functionality across web and mobile channels, integrating internet banking with other digital services, and enhancing platforms with personal financial management tools and personalized product recommendation engines.
Mobile Banking Customers
Users who have registered for mobile banking services provided by Nepali banks and financial institutions constitute the fastest-growing and most dynamic segment of the country's digital banking population. Mobile banking refers to the use of smartphone applications or feature phone interfaces developed by banks that enable customers to access their accounts, conduct transactions, and utilize banking services through mobile devices. The mobile banking application typically provides functionality including account balance inquiry, mini statements, fund transfers between own accounts and third parties, ConnectIPS interbank transfers, mobile recharge, utility bill payments, QR code payments, cheque book requests, fixed deposit opening, loan account management, credit card services, and customer support access. Nepal Rastra Bank regulates mobile banking services under its electronic banking guidelines requiring licensed financial institutions to meet specific security standards, authentication requirements, transaction limits, and consumer protection measures for their mobile banking offerings. The registration process typically involves downloading the bank's mobile application, completing a one-time registration using a debit card number or account details, and setting up authentication credentials including a mobile banking PIN or biometric authentication. The importance of mobile banking to Nepal's financial system is extraordinary given the unique characteristics of the country's technological and demographic landscape. Nepal has experienced a telecommunications revolution over the past two decades with mobile phone penetration growing from negligible levels in the early 2000s to near-universal coverage today as mobile network operators including Nepal Telecom and Ncell expanded their networks across challenging terrain. Smartphone adoption has followed with increasingly affordable devices making internet-capable mobile phones accessible to a broad cross-section of the population including rural residents, younger users, and lower-income segments. This mobile-first digital environment means that for the majority of Nepali adults their smartphone is their primary and often only device for accessing the internet and digital services including banking. Mobile banking applications are designed specifically for the smartphone form factor with touch-optimized interfaces, biometric authentication, and streamlined workflows making financial transactions accessible even to users with limited technical literacy. The convenience of mobile banking is particularly significant in Nepal where physical banking infrastructure remains concentrated in urban areas and transportation between rural communities and banking centers requires significant time and expense. A farmer in a remote hill district can use mobile banking to check account balances, receive remittance payments from family members abroad, pay for agricultural inputs, and settle utility bills without traveling hours to the nearest bank branch. For women who face additional mobility constraints due to household responsibilities or cultural norms mobile banking provides a channel for independent financial management. Historical trends in mobile banking adoption in Nepal represent one of the most remarkable success stories in the country's financial sector development. Mobile banking services were first introduced by pioneering commercial banks in the early 2010s with basic applications that offered limited functionality and served a niche user base of early adopters. The early mobile banking landscape was fragmented with each bank developing its own proprietary application without interoperability. The real inflection point came around 2015 to 2017 when several converging factors created the conditions for mass adoption including the proliferation of affordable Android smartphones, expansion of mobile internet coverage including 3G and 4G LTE networks, substantial bank investments in mobile banking technology, and NRB's policy support for digital financial services. The COVID-19 pandemic from 2020 to 2022 served as the ultimate catalyst with lockdowns and health concerns driving unprecedented adoption of mobile banking as customers sought safe contactless ways to manage their finances. Banks reported that mobile banking registrations and transaction volumes during the pandemic period exceeded all prior projections. The regulatory framework through NRB's unified directives requires comprehensive security measures for mobile banking including secure data transmission, secure storage of sensitive data, application-level authentication, and session management. Transaction limits differentiate between transfers to registered beneficiaries with higher limits and unregistered beneficiaries with lower limits. Consumer protection includes mandatory transaction alerts, clear fee disclosure, customer support channels, and liability frameworks for unauthorized transactions. Looking forward the future of mobile banking is being shaped by integration of artificial intelligence for personalized financial insights, embedding of banking services within non-banking applications through open banking APIs, expansion of functionality to include investment and insurance services, and continued evolution of biometric and behavioral authentication technologies that enhance security while reducing friction in the user experience.
PSP Agents
Agent network members registered with Payment Service Providers across Nepal constitute the frontline distribution and service network for the country's rapidly growing digital payment ecosystem. PSP agents are independent individuals or businesses typically local shopkeepers, general store owners, pharmacies, or mobile retailers who are authorized by licensed Payment Service Providers to offer cash-in and cash-out services to digital wallet users and other PSP customers. These agents form the critical bridge between the digital financial system and the physical economy by enabling users to convert cash into digital wallet balances and to withdraw cash from their digital wallets thereby solving the fundamental challenge of cash digitalization essential for digital payment adoption in economies where cash remains dominant. The agent network for PSPs is distinct from branchless banking agents in that it supports non-bank payment service providers rather than banks directly though many agents serve multiple PSPs and banks simultaneously through their retail locations. Nepal Rastra Bank's regulatory framework for PSP agents is established under the Payment and Settlement Act 2072 and the associated directives governing payment service providers requiring PSPs to register their agents with the central bank, maintain detailed records, implement monitoring mechanisms, and establish consumer protection measures. The importance of PSP agents to Nepal's financial system is anchored in their role as the physical access points that make digital payment services usable for the majority of the population. While digital wallets and payment applications provide sophisticated functionality for transferring value electronically, the utility of these services depends on users' ability to convert between digital value and physical cash at convenient accessible points. In Nepal where cash remains the dominant medium of exchange for most daily transactions the ability to deposit cash into a digital wallet and withdraw cash from a wallet is essential for practical usability of digital payment services. PSP agents provide this cash-in and cash-out functionality at thousands of locations across the country transforming purely digital services into hybrid systems bridging the electronic and physical economies. The agent network is particularly significant for financial inclusion because it extends the reach of payment services to populations that may not have bank accounts, may not be comfortable with fully digital onboarding, or may require face-to-face assistance in using digital financial services. In rural and remote areas where bank branches are scarce and ATM availability is limited, the local PSP agent often serves as the most accessible formal financial service point providing cash-in and cash-out services, account registration assistance, transaction troubleshooting, and education about digital financial services. Historical trends in PSP agent network development trace the evolution of Nepal's digital payment ecosystem from early mobile wallet services to the current competitive environment. The earliest agent networks were established by pioneering mobile wallet providers such as eSewa which launched in 2010 and began building an agent network to support digital wallet services facing challenges including limited awareness, investment in training and infrastructure without clear visibility of transaction volumes, and regulatory uncertainties. The entry of Khalti in 2017 and the expansion of IME Pay's agent network added competitive dynamics driving network expansion as PSPs competed to recruit agents and establish presence in key locations. The regulatory environment evolved significantly with NRB issuing comprehensive directives for PSP operations including specific requirements for agent management, due diligence, and monitoring providing a clearer framework for agent network development. The COVID-19 pandemic from 2020 to 2022 marked a pivotal phase with the surge in digital payment adoption creating unprecedented demand for agent services while economic disruption led many individuals to seek agent opportunities as alternative income sources. The regulatory framework requires PSPs to register agents with NRB providing detailed information about each agent's identity, location, business type, and authorized services. Agent registration requires due diligence including identity document verification, business premises assessment, financial standing evaluation, and screening for adverse records. NRB's guidelines specify operational parameters including transaction limits, agent identification requirements, receipt issuance obligations, and complaint handling procedures. Anti-money laundering compliance includes customer identity verification for transactions above thresholds, record maintenance, and suspicious transaction reporting to the Financial Intelligence Unit Nepal. Looking forward the PSP agent ecosystem faces opportunities through expansion of QR code payment infrastructure and the potential for agents to offer value-added services including digital account opening, micro-insurance distribution, and loan origination services that would expand their role beyond basic cash-in and cash-out operations.
Payment Service Providers (PSP)
Entities licensed by Nepal Rastra Bank to provide payment services including digital wallets, payment gateways, and remittance services constitute the non-bank segment of Nepal's formal payment infrastructure and represent one of the most dynamic and rapidly evolving sectors of the country's financial system. Payment Service Providers operate under the Payment and Settlement Act 2072 which establishes the legal framework for non-bank entities to engage in payment-related activities historically reserved for licensed banks and financial institutions. The PSP license enables entities to offer a range of payment services including operating digital wallet systems, providing payment gateway services for e-commerce merchants, facilitating domestic and international remittance transfers, issuing prepaid payment instruments, and operating agent networks for cash-in and cash-out services. NRB's PSP licensing framework categorizes license holders based on the scope of their permitted activities with different categories corresponding to different levels of operational complexity, capital requirements, and regulatory oversight. The importance of PSPs to Nepal's financial system extends across multiple dimensions of financial sector development, innovation, and inclusion. PSPs have been at the forefront of digital payment innovation in Nepal introducing services and business models that traditional banks had not developed or had been slow to adopt. The digital wallet services offered by PSPs including eSewa, Khalti, IME Pay, and others have brought digital payment capabilities to millions of Nepalis who may not have had bank accounts or who prefer the convenience and user experience of wallet-based payment services. PSP-operated payment gateways have enabled the growth of e-commerce in Nepal by providing the merchant-facing infrastructure processing online payments for goods and services purchased through websites, mobile applications, and social commerce channels. PSP remittance services have created more competitive and accessible channels for international fund transfers reducing costs and increasing speed of remittance flows essential for Nepal's remittance-dependent economy where inflows represent approximately twenty-five percent of GDP. The PSP sector has driven significant investment in payment technology infrastructure including mobile applications, merchant payment systems, agent management platforms, and fraud detection systems upgrading the technological capabilities of Nepal's entire financial ecosystem. PSPs have also been catalysts for financial inclusion serving customer segments including unbanked populations, rural communities, youth, and informal sector workers not adequately served by traditional banking channels. Historical trends in PSP licensing and sector development trace the evolution of Nepal's payment system from a bank-dominated model to an increasingly diverse ecosystem. The early period of non-bank payment services in Nepal was characterized by regulatory uncertainty with mobile wallet operators and other payment providers operating in a legal gray area before enactment of the Payment and Settlement Act 2072. The Act represented a watershed moment by establishing a clear legal framework for non-bank payment providers and creating the licensing categories enabling PSPs to operate with regulatory authorization. NRB began issuing PSP licenses following the Act's passage with initial licensees including established mobile wallet operators under transitional arrangements and new entrants capitalizing on the growing digital payment market. The licensing process requires applicants to meet capital requirements, demonstrate technical and operational capacity, submit business plans and risk management frameworks, and undergo NRB evaluation of governance structures and ownership arrangements. The PSP sector has grown from a small number of early licensees to a more substantial and diverse group serving different market segments, geographic areas, and use cases. The evolution has been marked by increasing competition, consolidation through mergers and acquisitions, and emergence of specialized PSPs focused on specific services such as remittance processing, payment gateway services, or agent network management. The regulatory framework operates under comprehensive provisions of the Payment and Settlement Act with licensing requirements including minimum paid-up capital thresholds varying by license category and ongoing requirements including maintaining capital adequacy, submitting periodic reports, complying with AML and CFT obligations, maintaining customer protection standards, and implementing information security measures. Looking forward PSPs face favorable conditions from continued digital payment adoption driven by smartphone penetration and changing consumer preferences but also face increasing competition from improved bank-provided digital services, international payment providers, and emerging technologies including blockchain-based systems.
Payment System Operators (PSO)
Organizations authorized by Nepal Rastra Bank to operate payment system infrastructure such as clearing houses, payment switches, and settlement networks form the foundational layer of Nepal's formal payment ecosystem. Payment System Operators are distinct from Payment Service Providers in that PSOs operate the underlying infrastructure through which payment transactions are cleared, switched, and settled rather than providing payment services directly to end users. The PSO category encompasses entities that manage the technical and operational systems enabling payment transactions to be processed between different financial institutions including automated clearing houses, payment switches routing transactions between banks, card payment networks, and settlement systems finalizing payment obligations. NRB's licensing and oversight framework for PSOs is established under the Payment and Settlement Act 2072 recognizing the critical importance of payment system infrastructure to the stability and efficiency of the financial system as a whole. The number of licensed PSOs provides an indicator of the depth and sophistication of Nepal's payment infrastructure and the extent to which the country's payment ecosystem has developed specialized infrastructure organizations. The importance of PSOs to Nepal's financial system is fundamental given that these organizations operate the infrastructure upon which all electronic payment transactions depend. When a customer of Bank A sends money to a customer of Bank B using ConnectIPS the transaction is processed through infrastructure operated by Nepal Clearing House Limited which serves as the PSO for Nepal's interbank payment systems. When a cardholder makes a purchase at a merchant using a different acquiring bank than the cardholder's issuing bank the transaction is routed for authorization and settlement through card network infrastructure operated by PSOs. When a mobile wallet user sends money to a bank account the transaction flows through payment infrastructure operated by PSPs themselves or by PSOs providing clearing and settlement services. The reliability, efficiency, and security of PSO-operated infrastructure directly affects the functioning of the entire payment ecosystem as disruptions at the infrastructure layer cascade to affect all participants. The concentration of payment activity through a limited number of PSOs creates systemic importance with failure or significant disruption of a major PSO potentially having implications for financial stability extending beyond the payment system itself. NRB's oversight of PSOs is calibrated to systemic importance with enhanced supervision for PSOs processing significant transaction volumes or serving as sole or dominant providers of critical payment infrastructure. Historical trends in PSO licensing and development in Nepal reflect the evolution from simple bilateral arrangements between banks to sophisticated centralized systems operated by dedicated infrastructure organizations. The early period was characterized by bilateral arrangements where banks managed their own clearing and settlement through direct relationships and manual mechanisms coordinated by NRB. The establishment of Nepal Clearing House Limited as the first dedicated PSO represented a significant milestone in professionalization and standardization of payment infrastructure management. NCHL was established as a special purpose company owned by NRB and commercial banks with the mandate to develop and operate interbank payment systems including ECC, ConnectIPS, and IPS for high-value payments. The subsequent development of the national payment switch and expansion of NCHL's role to include retail payment switching and settlement expanded PSO-operated infrastructure. The licensing of additional PSOs focused on specific payment segments or technologies has added diversity though the sector remains relatively concentrated given economies of scale and network effects. The regulatory framework operates under the Payment and Settlement Act 2072 establishing NRB's authority to designate, license, and supervise PSOs. Entities seeking PSO licenses must demonstrate technical and operational capacity, financial resources, governance structures appropriate to system importance, and risk management frameworks addressing operational, financial, and compliance risks. Licensing requirements are generally more demanding than for PSPs given the systemic importance and infrastructure focus of PSO activities. Looking forward the PSO sector faces challenges adapting to rapid technological change including blockchain and distributed ledger systems that could transform clearing and settlement. The continued development of Nepal's payment infrastructure including the national payment switch and potential central bank digital currency will have significant implications for PSO operations and the structure of the PSO sector.
Prepaid Cards
The total number of prepaid payment instruments issued in Nepal including gift cards, travel cards, payroll cards, and other pre-funded payment mechanisms provides an important indicator of the diversity and sophistication of the country's payment instrument landscape. Prepaid cards represent a category of payment cards where the cardholder loads funds onto the card before using it for transactions distinguishing them from debit cards which draw on a linked bank account and credit cards which extend a credit facility. The prepaid card model offers several distinct characteristics making it suitable for specific use cases including the ability to control spending to the preloaded amount, the absence of any requirement for a bank account relationship, the suitability for gifting and incentive programs, and the convenience for travel and international transactions. Nepal Rastra Bank regulates prepaid card issuance under its payment system oversight framework with specific provisions in the Unified Directives addressing the issuance, loading, usage, and redemption of prepaid payment instruments. NRB distinguishes between different categories including closed-system prepaid cards usable only at specific merchants and open-system prepaid cards usable at any merchant accepting the card's payment network. The importance of prepaid cards to Nepal's financial system is anchored in their role as a payment instrument serving segments and use cases not adequately addressed by traditional debit and credit cards. For individuals without bank accounts or who prefer not to link payment cards directly to bank accounts, prepaid cards provide access to electronic payment capabilities including ATM cash withdrawals, merchant payments, and online transactions without requiring a formal banking relationship. This feature makes prepaid cards particularly valuable for financial inclusion initiatives bringing unbanked populations into the formal payment system by providing a simple accessible instrument that does not require documentation, minimum balance, or ongoing relationship management that bank accounts entail. For employers prepaid payroll cards provide a mechanism for disbursing wages to employees without bank accounts reducing the costs and risks associated with cash payroll distribution. For government agencies prepaid cards serve as a distribution channel for social welfare payments, subsidies, and emergency relief funds enabling electronic distribution of benefits to recipients in areas with limited banking infrastructure. For businesses prepaid gift cards and incentive cards provide marketing and employee reward tools driving customer acquisition and engagement. For travelers prepaid travel cards offer convenient secure ways to carry foreign currency and make international payments with preloaded funds limiting foreign exchange exposure. Historical trends in prepaid card issuance in Nepal reflect the gradual development of the payment instrument ecosystem beyond core debit and credit products. The introduction was initially driven by specific institutional use cases including gift cards issued by retail chains and hospitality groups, travel cards offered by banks for customers traveling abroad, and corporate prepaid cards used by organizations for employee expense management and incentive programs. The early market was relatively small and fragmented with cards often tied to specific merchants or limited use cases and limited interoperability. The growth accelerated as banks recognized the potential of prepaid products to serve customer segments not well addressed by traditional card products and as regulatory clarity from NRB provided a more favorable framework for product development. The expansion of international prepaid card programs including travel cards linked to major card networks like Visa and Mastercard enabled usage for international transactions adding a significant use case driving adoption among travelers and expatriates. The COVID-19 pandemic created both opportunities and challenges with the shift toward digital payments creating favorable conditions while economic disruption and reduced travel activity affected certain prepaid card use cases. The regulatory framework under NRB's Unified Directives defines prepaid payment instruments and their classification with issuance restricted to licensed banks, financial institutions, and payment service providers authorized by NRB. Know-your-customer requirements are calibrated to card features with lower-value cards subject to simplified due diligence while higher-value cards with broader usage rights require comprehensive customer identification. Consumer protection provisions include requirements for clear disclosure of fees including issuance, loading, transaction, ATM withdrawal, inactivity, and redemption fees. Looking forward the prepaid card market faces opportunities from continued digital payment growth and potential integration with digital wallet services, development of virtual prepaid cards for online use, and expansion for specific use cases including education payments, healthcare spending, and government benefit distribution. Competition from debit cards offering similar functionality without separate preloading and digital wallets providing comparable features through mobile applications will shape the prepaid card trajectory.
RTGS Participants
Banks and financial institutions that are direct participants in Nepal's Real Time Gross Settlement system represent the highest tier of financial institution connectivity to the country's payment and settlement infrastructure. RTGS is a system for the real-time settlement of high-value interbank transactions on a gross basis meaning each transaction is settled individually and immediately rather than being batched or netted against other transactions. The system is operated by Nepal Rastra Bank as the central bank and constitutes the ultimate settlement layer for the entire payment system ecosystem providing final and irrevocable transfer of funds between settlement accounts held at the central bank. RTGS participants are typically the largest and most systemically significant financial institutions in Nepal including commercial banks with substantial balance sheets, significant payment processing volumes, and important roles in the interbank market. The number of RTGS participants provides an indicator of the breadth of direct participation in Nepal's high-value settlement infrastructure and the extent to which financial institutions have direct access to central bank settlement services rather than relying on correspondent banking arrangements. The importance of RTGS participation to Nepal's financial system is fundamentally related to the system's role as the final settlement layer for the entire payment ecosystem. When a customer makes a payment through ConnectIPS from Bank A to Bank B the transaction is cleared through NCHL's systems and ultimately settled through an RTGS transfer from Bank A's settlement account at NRB to Bank B's settlement account. When a government security is purchased in the primary market the payment from the purchasing bank to the government's account at NRB is processed through RTGS. When a foreign exchange transaction is settled between two banks the Nepali rupee leg of the transaction typically moves through RTGS. The RTGS system thus serves as the backbone of the entire financial system providing the definitive settlement of obligations between financial institutions that underpins confidence in the finality of payments throughout the economy. Participants in RTGS have direct access to this settlement infrastructure and can initiate and receive settlement transfers in real time without relying on intermediary institutions. Non-participant financial institutions without direct RTGS access must maintain correspondent banking relationships with RTGS participants to settle their interbank obligations creating dependency relationships affecting their operational efficiency and cost structure. The direct participation of a financial institution in RTGS signals its significance in the financial system as RTGS access is typically reserved for institutions meeting specific capital, operational, and regulatory requirements. Historical trends in RTGS participation in Nepal reflect the evolution of the financial system from a structure where only a small number of large banks had direct access to central bank settlement services to a more inclusive model expanding participation to a broader set of institutions. The RTGS system was established in Nepal in the early 2010s as part of a comprehensive payment system modernization program also introducing other critical infrastructure including ECC and ConnectIPS. Initial RTGS participation was limited to the largest commercial banks meeting the technical, operational, and financial criteria established by NRB for direct settlement access. The criteria for RTGS participation have been progressively refined with NRB periodically reviewing participation requirements to balance the objectives of maintaining safety and efficiency with expanding access to a broader set of financial institutions. The growth in RTGS participation over time reflects the overall development of Nepal's banking sector including the increasing number of banks achieving the scale, operational maturity, and regulatory standing qualifying them for direct settlement access. The participation base has expanded from the initial group of major commercial banks to include a wider range of financial institutions including development banks and larger finance companies meeting participation criteria. The regulatory framework for RTGS participation operates under NRB's authority as the central bank and operator of the RTGS system with legal basis in the Nepal Rastra Bank Act 2058. NRB's RTGS operating rules define criteria for participation including minimum capital and net worth requirements, technical connectivity standards, operational capacity assessments, and regulatory compliance. Participants must maintain settlement accounts at NRB with minimum balance requirements ensuring adequate liquidity to meet settlement obligations. Looking forward the RTGS system faces challenges adapting to evolving international standards including potential implementation of the ISO 20022 messaging standard enhancing data richness and processing capabilities, extension of operating hours to support longer settlement cycles, and potential integration with new payment technologies including APIs enabling more automated settlement processes.
Wallet Users
Total registered users of mobile wallets and digital wallet services in Nepal including users of major wallet platforms like eSewa, Khalti, IME Pay, and other NRB-licensed digital wallet providers represent the most dynamic and rapidly growing segment of the country's digital payment ecosystem. Digital wallets also referred to as mobile wallets or e-wallets are software-based payment instruments that store payment credentials and funds in digital form accessible through a mobile application or web interface. Wallet users can load funds into their wallets through various channels including bank transfers, agent-assisted cash-in, debit or credit card funding, and direct salary or remittance credits. Once funded wallet balances can be used for a wide range of transactions including peer-to-peer transfers, merchant payments through QR codes or identification numbers, utility bill payments, mobile recharges, e-commerce purchases, ticket bookings for transportation and entertainment, government fee payments, and international remittance transfers. Nepal Rastra Bank regulates digital wallet services under the Payment and Settlement Act 2072 with licensed PSPs authorized to operate wallet systems subject to capital requirements, operational standards, customer due diligence obligations, transaction limits, and consumer protection measures. The importance of wallet user adoption to Nepal's financial system is transformative representing a fundamental shift in how individuals and households engage with the formal financial system. Digital wallets have brought electronic payment capabilities to millions of Nepalis who previously had limited or no access to formal financial services effectively leapfrogging traditional banking infrastructure in a way that has reshaped the landscape of financial inclusion. For unbanked and underbanked populations the digital wallet provides a gateway to the formal financial system without requiring a bank account, minimum balance, or the documentation that traditional account opening entails. For banked populations the digital wallet offers a more convenient and feature-rich payment experience complementing bank accounts with specialized functionality for peer-to-peer transfers, merchant payments, and digital lifestyle services. The wallet ecosystem has driven expansion of merchant payment acceptance across Nepal with millions of merchants from large retail chains to small street vendors displaying QR codes enabling wallet-based payments creating a positive feedback loop where more wallet users drive more merchant acceptance which in turn attracts more wallet users. The wallet sector has been a major driver of innovation introducing savings goals, investment products, micro-insurance, lending services, and financial education content transforming wallets from simple payment tools into comprehensive financial management platforms. Historical trends in wallet user adoption represent one of the most remarkable growth stories in Nepal's financial sector development. The digital wallet concept was introduced to Nepal by eSewa which launched in 2010 as the country's first mobile wallet service offering basic fund transfer and bill payment functionality. The early years were characterized by gradual growth as eSewa built its user base, established agent networks, and developed merchant acceptance infrastructure while educating consumers about digital wallet benefits. Khalti entered the market in 2017 bringing additional competition, marketing investment, and innovation expanding the overall wallet market. IME Pay's entry added further competitive dynamics with the backing of IME Group's extensive remittance and financial services network. The period from 2017 to 2020 witnessed accelerating adoption as smartphone penetration increased, mobile internet connectivity improved, NRB's regulatory framework provided clarity and legitimacy for wallet operations, and wallet providers invested in marketing and product development. The COVID-19 pandemic from 2020 to 2022 served as the ultimate catalyst with lockdowns and health concerns driving massive shifts toward contactless and digital payment methods. Wallet providers reported record user registration numbers during the pandemic as consumers previously reliant on cash adopted digital payment methods. The growth trajectory has continued post-pandemic as habits formed during lockdowns persisted and as wallet providers enhanced services with new features, expanded merchant networks, and improved user experiences. The regulatory framework under the Payment and Settlement Act 2072 requires licensed PSPs to meet minimum capital requirements, maintain technical systems meeting NRB's standards, implement customer identification procedures, and submit periodic reports. Transaction limits restrict maximum wallet balance and per-transaction values with higher limits for users completing enhanced due diligence. Consumer protection includes mandatory fee disclosure, transparent terms, transaction notifications, complaint handling, and liability frameworks for unauthorized transactions. Looking forward the wallet sector faces opportunities and challenges as the payment ecosystem matures with continued growth depending on providers' ability to sustain innovation, maintain trust and security, and compete effectively with bank-provided mobile banking services that are becoming increasingly feature-rich.
Transaction Volume
ATM-Cash Withdrawal
The total number of ATM cash withdrawal transactions processed across Nepal's banking network in a given period represents a fundamental indicator of the public's reliance on cash as a medium of exchange and the role of automated teller machines in providing liquidity to the economy. This volume metric counts each discrete cash withdrawal event at an ATM terminal regardless of the amount withdrawn providing a measure of how frequently individuals and households access the ATM network to obtain physical currency for their transactional needs. The data is compiled by Nepal Rastra Bank from routine reporting submitted by all banks and financial institutions that operate ATM networks aggregated at the national level and typically reported on a monthly, quarterly, and fiscal year basis. Transaction volume for ATM cash withdrawals is a critical input for understanding cash demand patterns, evaluating the adequacy of ATM infrastructure deployment, assessing the effectiveness of digital payment promotion initiatives that aim to reduce cash dependence, and informing monetary policy decisions related to currency management and distribution across the country's seven provinces. The importance of ATM withdrawal transaction volume as an economic indicator extends beyond its surface-level interpretation as a measure of cash access frequency. Changes in ATM withdrawal volume over time provide valuable insights into evolving consumer payment preferences, the effectiveness of financial inclusion initiatives, and the overall direction of the economy's transition from cash-based to digital payment systems. A sustained decline in ATM withdrawal volume per capita would suggest that consumers are increasingly using alternative payment methods such as mobile wallets, QR payments, debit cards at point of sale, or online banking transfers instead of relying on cash for their transactions. Conversely stable or increasing withdrawal volumes despite growing digital payment adoption might indicate that the economy is experiencing overall payment system expansion where both cash and digital payments are growing as formal financial sector participation increases and economic activity expands. The volume of ATM withdrawals exhibits strong seasonal patterns in Nepal with significant spikes during major festivals including Dashain and Tihar when households require additional cash for gift-giving, shopping, travel, and celebration expenses. Understanding these seasonal patterns helps banks manage cash replenishment schedules, optimize ATM cash loading quantities, and ensure the ATM network can meet peak demand periods without service disruptions. Historical trends in ATM cash withdrawal transaction volume in Nepal reflect the complex interplay between expansion of banking infrastructure, growth of cash-dependent economic activity, and gradual adoption of alternative payment methods. During the early period of ATM deployment in the 1990s and 2000s withdrawal volumes grew rapidly as the number of ATMs expanded, as bank account penetration increased, and as consumers became familiar with ATM cash access convenience. The growth during this period was driven primarily by expansion of the formal banking system and increasing numbers of individuals with bank accounts and ATM cards rather than any increase in cash intensity per account holder. The period from approximately 2010 to 2020 witnessed continued growth in ATM withdrawal volumes but at a moderating rate as the ATM network reached saturation in urban areas and as the first signs of digital payment adoption began affecting withdrawal behavior. The COVID-19 pandemic created significant volatility with initial lockdowns causing sharp declines as economic activity contracted and consumers reduced trips to public places including ATMs, followed by recovery as restrictions eased. The post-pandemic period has seen a more complex pattern with some consumer segments reducing cash usage permanently due to habits formed during the pandemic while other segments continue to rely on cash for daily transaction needs. The regulatory framework affecting ATM cash withdrawal transactions operates primarily through NRB's oversight of banking operations and payment systems including regulation of fees for inter-bank ATM withdrawals through the Shared Cash Transaction network which affects consumer behavior and withdrawal volumes. Looking forward the future of ATM withdrawal volumes will be influenced by continued expansion of digital payment infrastructure and merchant acceptance, evolution of consumer payment preferences particularly among younger digitally native generations, development of alternative cash access mechanisms including cash-back at point of sale and agent-assisted cash-out, and potential introduction of central bank digital currency providing a digital alternative to physical cash. The ATM withdrawal volume indicator will remain an important metric for understanding the transition from cash to digital payments in one of South Asia's most cash-dependent economies.
Branchless Banking
The total transaction volume processed through branchless banking agents in Nepal represents a critical metric for measuring the effectiveness of financial inclusion initiatives and the extent to which formal banking services are reaching previously unserved populations. This volume indicator counts each discrete transaction conducted at a branchless banking agent location including cash deposits, cash withdrawals, fund transfers, bill payments, loan repayments, and other banking services that agents are authorized to provide on behalf of their sponsoring financial institutions. Transaction volume data is compiled by the banks and financial institutions that operate branchless banking networks and reported to Nepal Rastra Bank as part of the central bank's financial access monitoring framework. The volume of branchless banking transactions provides a direct measure of how frequently individuals in underserved areas are using formal banking services and how deeply agent-based banking has penetrated into communities where traditional bank branches are not present. The importance of branchless banking transaction volume as an indicator relates to its role as a measure of actual usage of financial services rather than just availability of access points. While the number of branchless banking agents indicates potential reach of agent-based services, transaction volume reveals whether those agents are actually being used to conduct financial transactions. Low transaction volumes at agent locations despite a large number of registered agents suggest barriers to usage including lack of awareness, trust, digital literacy, or service quality preventing branchless banking from achieving its intended financial inclusion impact. Conversely growing transaction volumes indicate the model is successfully meeting financial needs of target populations and investments in agent recruitment, training, and infrastructure are yielding measurable results. Branchless banking transaction volume also provides insights into economic characteristics of areas served by agent networks with high cash-in volumes suggesting the local economy generates surplus cash being absorbed into the formal financial system while high cash-out volumes suggest reliance on remittance inflows or other external fund sources. For Nepal where a significant portion of the population resides in rural areas with limited conventional banking infrastructure, branchless banking transaction volume is one of the most important indicators of financial inclusion progress in the country. Historical trends in branchless banking transaction volume trace the evolution from experimental pilot programs to mainstream financial service delivery. The early years from approximately 2011 to 2015 were characterized by modest transaction volumes as banks established initial agent networks, trained agents, and worked to build awareness and trust among target populations. Transaction volumes during this period concentrated in basic cash-in and cash-out services with limited adoption of complex banking services through agent channels. The period from 2015 to 2020 witnessed significant growth as agent networks expanded, service quality improved, and consumers became more comfortable with agent-based banking. The COVID-19 pandemic had a complex impact with initial lockdowns disrupting agent operations while simultaneously highlighting the importance of local financial access points as bank branches reduced services. The post-pandemic period has seen continued growth as economic recovery and lasting shift toward local service access sustained demand for agent-based banking. The composition of transaction volumes has evolved with increasing share of complex services as agents have been trained to offer a wider range of banking products. The regulatory framework establishes per-transaction and daily cumulative transaction limits balancing accessibility with risk management with higher limits applicable to transactions with enhanced customer due diligence. Consumer protection requirements include mandatory receipt issuance, clear fee disclosure, and complaint handling mechanisms. Looking forward growth will depend on continued expansion of agent networks into underserved areas, improvement of service quality through better training and technology, introduction of new banking services deliverable through agent channels, and integration of branchless banking with digital payment ecosystems including ability for agent transactions to be initiated through mobile applications.
ConnectIPS
The number of interbank fund transfer transactions processed through the ConnectIPS system in Nepal provides a critical indicator of the adoption of electronic fund transfers for person-to-person and person-to-business payments within the country's banking system. Each ConnectIPS transaction represents a consumer or business initiating an electronic transfer of funds from their account at one bank to an account at a different bank using the centralized interbank switching infrastructure operated by Nepal Clearing House Limited. The transaction volume metric counts each successful transfer processed through the system regardless of monetary value providing insight into how frequently Nepali bank account holders are using electronic interbank transfers as a substitute for cash, cheques, bank drafts, and other traditional payment methods. ConnectIPS transaction volume is reported by NCHL to Nepal Rastra Bank on a regular basis and is published as part of the central bank's payment system statistics tracking the development of digital payment adoption across the country. The importance of ConnectIPS transaction volume as an indicator relates to its role in measuring the digitization of interbank fund movements essential for the functioning of the modern economy. Every time a salary is transferred from a corporate account to employee accounts at different banks, when a customer pays for an online purchase from a merchant banking with a different institution, when a parent sends money to a child studying in another city, or when a business settles an invoice with a supplier using a different bank, these transactions increasingly flow through the ConnectIPS system. The volume of these transactions provides a window into the extent to which the economy's payment flows have migrated from physical instruments like cheques and cash to electronic channels offering greater speed, convenience, and traceability. High and growing ConnectIPS transaction volumes suggest the payment system is functioning efficiently with consumers and businesses willingly adopting electronic interbank transfers for routine payment needs. For businesses the volume of ConnectIPS transactions processed provides insight into payment preferences of customers and suppliers informing decisions about payment infrastructure investments. For policymakers ConnectIPS transaction volume trends inform evaluation of payment system development policies and identification of areas where further investment in payment infrastructure or consumer education may be needed. Historical trends in ConnectIPS transaction volume reflect the classic adoption curve of an innovative payment service requiring both infrastructure development and consumer behavior change. The ConnectIPS system was launched by NCHL in 2014 with initial transaction volumes growing slowly as banks integrated with the system, as consumers became aware of the service, and as registration and transaction initiation processes were refined. The early adoption period from 2014 to 2017 saw modest volumes as the service was primarily used by early adopters comfortable with technology. The inflection point occurred around 2017-2018 as several factors converged to drive accelerated growth including expansion of mobile banking applications integrating ConnectIPS functionality, reduction or elimination of transaction fees by banks to promote digital adoption, and growing awareness through marketing campaigns. The COVID-19 pandemic from 2020 to 2022 marked a dramatic acceleration as lockdowns and health concerns drove massive shifts in consumer payment behavior away from cash and physical banking toward digital alternatives with transaction volumes growing at rates far exceeding prior projections. The growth trajectory has continued post-pandemic as habits formed during lockdowns persisted and banks enhanced the ConnectIPS user experience. The regulatory framework addresses transaction processing standards including maximum processing times, settlement arrangements, fee structures, and consumer protection provisions governing customer recourse for failed or erroneous transactions. Looking forward growth will be influenced by continued expansion of digital payment infrastructure, integration with emerging payment platforms including QR codes and wallet services, potential introduction of enhanced functionality including bulk payment processing and scheduled recurring transfers, and the evolution of the competitive landscape with alternative fund transfer mechanisms including instant payment systems offering faster or more convenient transfer experiences.
Credit Cards
The total number of credit card transactions processed in Nepal serves as a sophisticated indicator of consumer spending behavior, credit market activity, and the adoption of revolving credit instruments within the country's financial system. Each credit card transaction whether a point-of-sale purchase at a merchant location, an online transaction on an e-commerce platform, a cash advance obtained from an ATM, or a recurring payment for subscriptions and services represents a consumer's decision to use credit rather than debit or cash for their payment needs. The volume metric counts each discrete transaction processed through credit card networks operated by international card schemes including Visa and Mastercard as well as domestic card networks. This transaction volume data is reported by issuing and acquiring banks to Nepal Rastra Bank and aggregated at the national level to provide a comprehensive picture of credit card usage patterns across the country. The volume of credit card transactions reflects not just the number of active credit cards in circulation but also the frequency with which cardholders choose to use their credit cards for various types of purchases. The importance of credit card transaction volume as an economic indicator extends to its role in measuring consumer confidence, retail sector activity, and the formalization of consumer spending. Credit card transactions typically increase when consumers are optimistic about their economic prospects and confident in their ability to repay credit obligations while declining during periods of economic uncertainty when consumers reduce discretionary spending and rely more on debit or cash for purchases. The volume of credit card transactions thus serves as a real-time indicator of consumer sentiment and spending behavior complementing broader economic indicators such as retail sales, consumer confidence surveys, and gross domestic product data. For the retail sector credit card transaction volumes provide insights into consumer spending patterns across different merchant categories including retail stores, restaurants, hotels, travel services, and entertainment venues. Merchants can use this data to benchmark their own performance against industry trends and make informed decisions about marketing investments, pricing strategies, and customer engagement initiatives. For the financial sector credit card transaction volume trends affect revenue models of issuing and acquiring banks through interchange fees, merchant discount rates, and transaction processing charges representing significant income streams for card-issuing financial institutions. Historical trends in credit card transaction volume in Nepal reflect the gradual but accelerating adoption of credit cards as a payment instrument among the country's urban and middle-class populations. Credit cards were introduced in Nepal in the 1990s with initial transaction volumes limited to a small number of affluent consumers and a limited merchant acceptance network concentrated in high-end retail establishments, hotels, and restaurants in Kathmandu and other major cities. Through the 2000s and early 2010s credit card transaction volumes grew steadily as banks expanded card issuance programs, as merchant acceptance networks grew to include a broader range of retail establishments, and as consumers became more familiar with the convenience and benefits of credit card usage. The introduction of rewards programs, travel benefits, and lifestyle-focused card products by competing banks stimulated consumer interest and drove increased transaction frequency among existing cardholders. The expansion of e-commerce including growth of online retail platforms, travel booking websites, and digital service providers created new use cases for credit card transactions driving additional volume growth. The COVID-19 pandemic had a moderating effect on credit card transaction volumes as overall consumer spending declined due to economic disruption and as travel-related spending constituting a significant portion of credit card usage was severely curtailed by travel restrictions. However the pandemic also accelerated the shift toward online shopping and digital services supporting credit card transaction volumes for e-commerce even as in-person spending declined. The post-pandemic recovery has seen credit card transaction volumes rebound as consumer spending recovered and as merchant acceptance and card usage continued to expand. The regulatory framework through NRB's Unified Directives establishes rules governing credit card interest rates and fee structures affecting the cost of credit card borrowing and influencing transaction volumes by affecting cardholder decisions about whether to use credit cards versus other payment methods. Looking forward growth will be influenced by continued expansion of merchant card acceptance infrastructure, introduction of innovative card products with enhanced features, evolution of digital wallet services enabling card-based payments through mobile devices, and the changing competitive landscape including emergence of buy-now-pay-later services offering alternative credit products.
Cross Border QR Acquiring
The transaction volume of cross-border QR code payments acquired in Nepal represents an emerging and strategically important indicator of the country's integration with the global digital payment ecosystem and its attractiveness as a destination for international visitors. Cross-border QR acquiring refers to the process by which international tourists and other foreign visitors to Nepal can make payments at Nepali merchant locations by scanning QR codes using their home-country mobile payment applications rather than needing to use cash, foreign credit cards, or other traditional payment methods. This capability is enabled through bilateral and multilateral interoperability arrangements between Nepal's payment infrastructure and international payment networks including linkages with India's Unified Payments Interface through the NPCI International Payments platform and potential future connections with other international QR payment systems. Each cross-border QR acquiring transaction represents a foreign visitor using their familiar home payment application to make a purchase at a Nepali business reflecting the removal of payment friction for international tourists and the expansion of Nepal's merchant payment acceptance to accommodate international digital payment methods. The importance of cross-border QR acquiring transaction volume as an economic indicator relates directly to Nepal's tourism sector which is one of the country's most significant sources of foreign exchange earnings and economic activity. International tourism contributes billions of rupees annually to Nepal's economy supporting hundreds of thousands of jobs in hospitality, transportation, retail, and related service industries. The ease with which international visitors can make payments during their stay directly affects their travel experience, spending patterns, and likelihood of returning for future visits or recommending Nepal as a destination. When international visitors can pay for hotels, restaurants, tours, souvenirs, and other expenses using their familiar home payment applications through QR code scanning they are more likely to spend freely and to visit a broader range of merchants including small vendors and local artisans who may not have traditional card payment infrastructure. Conversely when visitors face difficulties making payments including the need to carry large amounts of cash, navigate unfamiliar payment systems, or pay high foreign transaction fees on credit cards their overall travel experience is diminished. For Nepali merchants particularly small and medium enterprises catering to international tourists the ability to accept cross-border QR payments opens their customer base to the millions of international visitors who come to Nepal annually without requiring investment in traditional card payment infrastructure. Historical trends in cross-border QR acquiring transaction volume in Nepal reflect the early stage of this payment service and its rapid growth from a nascent capability to an increasingly important payment channel for international visitors. The introduction was enabled by interoperability arrangements between Nepal's payment infrastructure and India's UPI system which allows Indian tourists who represent the single largest source of international visitors to Nepal to make QR payments at Nepali merchants using their Indian UPI applications. This bilateral arrangement was a significant milestone marking the first operationalization of cross-border QR interoperability for inbound tourism payments. Initial transaction volumes were modest as the service was rolled out gradually with a limited number of merchants enabled for cross-border QR acceptance and as awareness among Indian tourists was built through marketing and communication campaigns. The growth trajectory has been positive with transaction volumes increasing as more Nepali merchants are onboarded for cross-border QR acceptance, as awareness among international visitors grows through travel industry channels, and as overall volume of international tourist arrivals recovers following COVID-19 pandemic disruptions. The expansion to additional international payment networks beyond the India-UPI linkage including potential connections with Southeast Asian QR payment systems and international wallet services will further expand the addressable market. The regulatory framework operates under NRB's oversight of cross-border payment arrangements including requirements for foreign exchange conversion and settlement, compliance with AML and CFT regulations, and consumer protection provisions applicable to cross-border transactions. Technical standards for QR code interoperability including the Nepal QR standard ensure cross-border QR payments can be processed through the same merchant QR codes used for domestic payments. Looking forward growth will be influenced by recovery and growth of international tourist arrivals, expansion of merchant cross-border QR acceptance across broader business categories, addition of interoperability arrangements with additional international payment systems, and evolution of the regulatory framework supporting cross-border digital payment while managing associated risks.
Debit Cards
The total count of debit card transactions processed through Nepal's payment systems including point-of-sale purchases at merchant locations, e-commerce transactions on online platforms, and other card-not-present transactions provides a core indicator of consumer adoption of electronic payment methods for retail and commercial transactions. Each debit card transaction represents a consumer using the funds in their bank account to make a payment through the card network infrastructure operated by international card schemes such as Visa and Mastercard or through domestic card networks. The transaction volume metric counts each individual payment authorization and settlement that flows through the debit card processing ecosystem providing insight into how frequently Nepali bank account holders are using their debit cards as an alternative to cash, cheques, or other payment methods for everyday spending needs. Debit card transaction volume is reported by issuing and acquiring banks to Nepal Rastra Bank and is aggregated with other payment system statistics to provide a comprehensive picture of electronic payment adoption. The importance of debit card transaction volume as an economic indicator relates to its role as a measure of formalization of consumer spending and integration of retail transactions into the electronic payment ecosystem. When consumers use debit cards for their purchases each transaction creates an electronic record documenting payment amount, merchant identity, transaction date, and other details supporting business accounting, tax compliance, and economic analysis. The shift from cash transactions leaving no electronic trail to debit card transactions creating comprehensive digital records represents a fundamental improvement in transparency and traceability of economic activity. For merchants debit card payments reduce costs and risks associated with cash handling including time and expense of cash counting, security risks of cash storage and transportation, and potential for cash-related fraud or theft. For the banking sector debit card transaction volumes generate fee income through merchant discount rates and interchange fees contributing to revenue models of card-issuing and acquiring banks. For policymakers and economic analysts debit card transaction volume provides a real-time indicator of consumer spending activity complementing traditional economic data sources such as retail sales surveys and household consumption surveys. Historical trends in debit card transaction volume reflect the evolution from simple ATM access tools to full-featured payment instruments used for a wide range of retail and commercial transactions. In the early years from the 1990s through the mid-2000s transaction volumes were dominated by ATM cash withdrawals with point-of-sale debit card usage representing a very small fraction of total volumes due to limited merchant acceptance infrastructure and consumer preference for cash at the point of sale. The expansion of point-of-sale terminal deployment and introduction of international debit card schemes enabling card usage at merchants accepting Visa and Mastercard gradually increased debit card transaction volumes at merchant locations. The adoption of debit cards for e-commerce transactions grew with expansion of online shopping, travel booking, and digital service platforms enabling card-not-present payments through secure payment gateways. The period from 2010 to 2020 witnessed steady growth as the number of debit cards in circulation increased, as merchant acceptance expanded across broader retail categories and geographic areas, and as consumers became more comfortable using debit cards for everyday purchases. The COVID-19 pandemic accelerated the shift toward debit card usage as consumers sought contactless payment methods with the post-pandemic period seeing continued growth as card acceptance infrastructure expanded and consumer habits persisted. The regulatory framework under NRB's Unified Directives regulates merchant discount rates ensuring reasonable fees, establishes technical standards for debit card security including EMV chip implementation, and provides consumer protection including liability limits for unauthorized transactions. Looking forward growth will be influenced by continued expansion of merchant card acceptance infrastructure including affordable point-of-sale solutions for small merchants, adoption of contactless debit card technology enabling tap-and-pay transactions, integration of debit cards into digital wallet services enabling mobile-based card payments, and evolution of the competitive landscape as alternative payment methods including QR payments and wallet services compete for retail transaction volumes.
E-Commerce
The number of online payment transactions processed through e-commerce platforms in Nepal provides a direct indicator of the growth and development of the country's digital commerce economy. This transaction volume metric counts each payment processed through e-commerce payment gateways for goods and services purchased through websites, mobile applications, social commerce channels, and other digital platforms where transactions are initiated and completed online. The e-commerce transaction volume encompasses a wide range of purchase categories including physical goods sold through online retail platforms, digital products such as software and media content, travel and hospitality bookings including flights, hotels, and tour packages, event tickets, educational course enrollments, healthcare appointments and telemedicine consultations, food delivery orders, and subscription services for streaming and software. The data on e-commerce transaction volumes is compiled from payment gateway operators, acquiring banks, and e-commerce platforms processing online payments and reported to Nepal Rastra Bank as part of the payment system statistics framework. The importance of e-commerce transaction volume as an economic indicator extends to its role in measuring the digital transformation of Nepal's retail sector, consumer behavior evolution, and development of digital infrastructure supporting online commerce. The growth of e-commerce transaction volumes signals that consumers are increasingly comfortable with making purchasing decisions based on digital product information, trusting online payment systems with financial information, and relying on delivery and logistics networks to fulfill purchases. For businesses e-commerce transaction volume growth represents expansion of addressable markets beyond geographic boundaries enabling merchants in one city to serve customers across the country. The e-commerce ecosystem supports entrepreneurship and market access for small and medium enterprises that may not have resources to establish physical retail presence in multiple locations but can reach customers through digital platforms and online marketplaces. For the financial sector e-commerce transaction volumes drive demand for payment gateway services, digital payment instruments, and transaction processing infrastructure offered by banks and payment service providers. For policymakers e-commerce transaction volume growth provides insights into effectiveness of digital infrastructure investments, evolution of consumer protection needs in the online environment, and development of regulatory framework for electronic commerce and digital payments. Historical trends in e-commerce transaction volume in Nepal reflect the relatively late but rapidly accelerating adoption of online shopping and digital commerce. The early years from approximately 2010 to 2015 were characterized by modest transaction volumes as the first generation of Nepali e-commerce platforms emerged offering primarily electronics, fashion, and household goods through basic websites with limited payment options including cash on delivery as the dominant method. Consumer trust in online payments was limited with many consumers preferring cash on delivery or bank transfer rather than entering card details on e-commerce platforms. The expansion of reliable internet connectivity particularly mobile internet through 3G and 4G networks, proliferation of affordable smartphones, and growing digital literacy among Nepal's youth population created favorable conditions for e-commerce growth from 2015 onward. The introduction of user-friendly payment gateways by banks and payment service providers including integration with mobile banking and digital wallet services reduced friction in the online payment process. The COVID-19 pandemic from 2020 to 2022 marked a dramatic acceleration in e-commerce adoption as lockdowns and health concerns drove consumers to shift purchasing from physical stores to online channels for categories including groceries, household supplies, medicines, and other essential goods that had previously been purchased predominantly in-person. This pandemic-driven surge represented a structural shift in consumer behavior persisting in the post-pandemic period. The regulatory framework operates under the Electronic Transactions Act 2063 and NRB's payment system regulations governing online payment processing including security standards, encryption requirements, data protection obligations, and fraud prevention measures. Consumer protection regulations applicable to e-commerce include requirements for clear disclosure of product information, pricing, delivery terms, return policies, and dispute resolution mechanisms. Looking forward growth will be influenced by continued expansion of internet connectivity and smartphone penetration, development of logistics and delivery infrastructure enabling reliable order fulfillment across the country, growth of digital payment adoption, evolution of consumer trust in online commerce and payment security, and entry of international e-commerce platforms into the Nepali market.
ECC
The transaction volume processed through the Electronic Cheque Clearing system in Nepal provides an important indicator of the continuing role of cheques in the country's payment mix and the pace of transition from paper-based to electronic payment instruments. Each ECC transaction represents a cheque that has been deposited by the recipient at their bank and processed for clearing through the digital image-based system operated by Nepal Clearing House Limited rather than through traditional physical transportation of paper cheques between banks. The transaction volume metric counts each cheque processed through the ECC system regardless of the cheque's monetary value providing insight into how frequently Nepali individuals, businesses, and institutions continue to use cheques as a payment instrument. ECC transaction volume data is reported by NCHL to Nepal Rastra Bank and published as part of the central bank's payment system statistics tracking usage of different payment instruments over time. The importance of ECC transaction volume as an economic indicator relates to its role in measuring stickiness of traditional payment instruments and the pace of payment system modernization. Cheques continue to be used for a variety of transaction types where they offer specific advantages or where electronic alternatives have not yet achieved full displacement including business-to-business payments, government disbursements, institutional fund transfers, rent and lease payments, education fee payments, and legal settlement payments. The volume of cheque transactions through the ECC system provides insights into payment preferences of different user segments and transaction categories with persistently high cheque volumes in certain sectors suggesting that migration to electronic alternatives faces barriers including regulatory requirements, organizational inertia, or absence of suitable electronic alternatives for specific use cases. For banks and financial institutions ECC transaction volumes affect operational planning including staffing requirements for cheque processing centers, investments in cheque image capture technology, and economics of maintaining cheque processing infrastructure. For policymakers at NRB the trend in ECC transaction volumes informs evaluation of policies aimed at promoting electronic payment adoption including effectiveness of differential pricing, awareness campaigns, and regulatory measures designed to encourage the shift from paper-based to electronic instruments. Historical trends in ECC transaction volume in Nepal reflect the introduction of electronic cheque clearing as a replacement for traditional physical cheque processing and the subsequent gradual decline in overall cheque usage. The ECC system was implemented by NCHL in the early 2010s to modernize cheque clearing by replacing physical transportation with digital image transmission. The introduction initially led to an increase in processed cheque volumes as improved efficiency and faster clearing times made cheques more attractive compared to the slow physical clearing system. However as electronic alternatives including ConnectIPS, internet banking transfers, and mobile banking payments became more widely available and convenient, the overall trend in cheque usage including ECC transaction volumes began to decline reflecting the global pattern of cheque displacement by electronic payment methods. The rate of decline has been influenced by the pace of digital payment adoption across different user segments, availability and convenience of electronic alternatives for specific transaction types, and the regulatory environment. The COVID-19 pandemic accelerated the decline in ECC transaction volumes as lockdowns and health concerns made physical cheque handling less attractive and as the surge in digital payment adoption reduced demand for cheque-based payments. The regulatory framework for ECC operates under NRB's oversight of payment and settlement systems with rules establishing maximum clearing timelines, rights and obligations of participating banks, fee structures, and procedures for handling exception items including dishonored cheques. The legal framework under the Negotiable Instruments Act 2034 defines legal characteristics of cheques with the ECC system operating within this framework by providing technical infrastructure for electronic presentment while maintaining legal validity. Looking forward the trend is expected to continue its gradual decline as digital payment adoption deepens though complete disappearance of cheques is not expected in the foreseeable future given continuing utility for specific transaction types including large-value business payments, legal settlements, and transactions where features including post-dating, stop payment capability, and physical documentation remain valued.
Faster Payment Systems
Transaction count processed through real-time or near-real-time payment systems in Nepal represents one of the most dynamic and rapidly growing segments of the country's payment ecosystem. Faster payment systems encompass a range of payment infrastructure and services enabling immediate or near-immediate transfer of funds between parties with settlement occurring within seconds rather than hours or days required by traditional methods. In the context of Nepal's payment system faster payments include transactions processed through ConnectIPS providing real-time interbank fund transfers, instant mobile wallet transfers between users of the same wallet service, QR code payments authorized and confirmed in real time at point of sale, and other payment mechanisms where the payee receives immediate payment confirmation and funds are available without delay. The transaction volume of faster payments is compiled from data reported by payment systems and service providers operating real-time payment infrastructure including NCHL for ConnectIPS, payment service providers for wallet and QR transactions, and banks for instant transfer services. The importance of faster payment transaction volume as an economic indicator relates to the transformative impact of real-time payments on economic efficiency, financial inclusion, and quality of life. When payments are processed in real time the entire economy operates more efficiently because funds are available for use immediately rather than being held up in settlement cycles. For individuals faster payments mean that when a family member sends money for an urgent need the recipient can access funds immediately rather than waiting for the transfer to clear. For businesses faster payments enable just-in-time inventory management by allowing immediate payment to suppliers upon delivery, reduce working capital requirements by accelerating conversion of sales into available funds, and improve customer satisfaction by providing instant payment confirmation. For merchants particularly small and micro enterprises the availability of real-time payment confirmation at point of sale through QR code or instant transfer systems reduces risk of payment disputes and chargebacks while improving customer checkout experience. For government agencies faster payments enable immediate distribution of social welfare benefits, emergency relief funds, and salary payments ensuring recipients have access without delay. For policymakers the growth of faster payment transaction volumes provides evidence of successful payment system modernization and adoption of international best practices. Historical trends in faster payment transaction volumes reflect the progressive introduction and adoption of real-time payment capabilities across different payment systems and use cases. The initial faster payment capability was provided through ConnectIPS which launched in 2014 offering real-time interbank fund transfers with early transaction volumes modest as the system was in initial deployment phase but growing steadily as more banks integrated and consumer awareness increased. The introduction of QR code payments by mobile wallet providers including eSewa and Khalti added a new dimension enabling real-time payments at physical point of sale expanding use cases beyond person-to-person transfers to include retail transactions. The launch of the Nepal QR standard by NCHL and NRB further accelerated faster payment adoption by enabling interoperability between different payment systems allowing consumers to use any participating wallet or banking app to scan any merchant's Nepal QR code. The COVID-19 pandemic from 2020 to 2022 marked a significant inflection point with the combination of lockdowns, social distancing, and health concerns driving consumers to adopt contactless and digital payment methods at unprecedented rates. Transaction volumes for ConnectIPS, mobile wallet transfers, and QR payments surged during this period with growth continuing in the post-pandemic period as habits persisted and payment infrastructure continued to expand. The regulatory framework establishes technical standards for faster payments including the Nepal QR standard and messaging formats for instant fund transfers ensuring interoperability, security, and reliability across different payment systems. Settlement arrangements ensure real-time payments are backed by secure final settlement protecting all parties from settlement risk. Consumer protection regulations include requirements for immediate transaction confirmation, clear fee disclosure, liability frameworks for unauthorized instant payments, and dispute resolution mechanisms. Looking forward growth is expected to continue as infrastructure expands, adoption deepens, new use cases including request-to-pay and recurring payments are developed, and interoperability between different faster payment systems is enhanced to enable seamless instant payments across the entire payment ecosystem.
IPS
The number of transactions settled through the Interbank Payment System in Nepal provides a critical indicator of interbank financial activity and the movement of high-value funds between financial institutions in the country's banking system. Each IPS transaction represents a high-value interbank transfer settled on a real-time gross basis through the central bank settlement infrastructure operated by Nepal Clearing House Limited under NRB oversight. The transaction volume metric counts each discrete interbank transfer processed through the system including transactions related to interbank lending and borrowing in the money market, settlement of securities purchases and sales in the government securities market, settlement of foreign exchange transactions between banks, large corporate payments requiring interbank settlement, and settlement of net positions from other payment systems including ConnectIPS, ECC, and card payment networks. Unlike retail payment volumes numbering in the millions, IPS transaction volumes are typically lower in absolute count but represent disproportionately high monetary value reflecting core financial flows underpinning stability of the entire banking system. The importance of IPS transaction volume as an indicator of financial system health relates to its role as a measure of interbank financial market activity and efficient functioning of the banking sector's core funding and liquidity mechanisms. The volume of IPS transactions provides insights into the level of activity in the interbank money market where banks borrow from and lend to each other to manage daily liquidity positions. Higher IPS volumes suggest active interbank market participation with banks efficiently redistributing liquidity throughout the system while lower volumes may indicate reduced interbank activity or structural liquidity issues affecting market functioning. The volume of IPS transactions related to government securities settlement provides an indicator of activity in Nepal's sovereign debt market with implications for government borrowing costs and the development of the domestic capital market. The volume of foreign exchange settlement transactions through IPS reflects the level of activity in the interbank foreign exchange market with implications for exchange rate determination and foreign reserve management. Central bank operations including open market operations and standing facility transactions are conducted through the IPS system making its transaction volume a direct indicator of monetary policy implementation activity. Historical trends in IPS transaction volume reflect the growth and development of Nepal's financial markets and the increasing sophistication of interbank financial transactions. Before the establishment of IPS interbank settlements were conducted through bilateral arrangements and manual processes that limited the volume and efficiency of interbank transactions. The implementation of IPS provided a centralized infrastructure that facilitated increased interbank transaction activity by reducing settlement risk, improving processing efficiency, and enabling real-time settlement. Transaction volumes have grown over time as the banking sector has expanded, as financial markets have developed, and as participants have increased their use of the system for a wider range of interbank transactions. The growth in IPS volumes has been correlated with the overall expansion of Nepal's economy and financial system with periods of rapid economic growth and financial market development associated with increased interbank transaction activity. The COVID-19 pandemic period saw some volatility in IPS volumes as economic disruption affected interbank lending activity and financial market transactions with volumes recovering as economic activity normalized. The regulatory framework for IPS operates under the Payment and Settlement Act 2072 with the system designated as systemically important payment infrastructure subject to comprehensive regulatory supervision. NCHL's IPS rules govern participation eligibility, technical standards, transaction processing procedures, settlement arrangements, and risk management frameworks. Participants must maintain settlement accounts at NRB and comply with operational requirements regarding system access, transaction authorization, and reconciliation procedures. Looking forward IPS transaction volumes will be influenced by continued growth of Nepal's financial markets, development of new financial products and services requiring interbank settlement, potential expansion of IPS functionality to support new transaction types, and evolution of the regulatory framework including implementation of international standards from the Bank for International Settlements.
Internet Banking
The total volume of transactions initiated through internet banking platforms in Nepal provides a key indicator of adoption of web-based digital banking channels for financial transactions. This volume metric counts each transaction processed through internet banking systems including fund transfers, bill payments, utility payments, mobile recharge, loan repayments, fixed deposit operations, and other online banking activities conducted by retail and corporate customers through secure web portals. Internet banking transaction volume data is reported by banks to Nepal Rastra Bank as part of regulatory reporting on digital banking channel usage providing insight into the extent to which customers are using web-based self-service channels for their banking needs. The volume of internet banking transactions reflects both the number of registered internet banking users and the frequency with which those users choose the web channel for their financial transactions rather than visiting branches, using mobile apps, or relying on other channels. The importance of internet banking transaction volume as an economic indicator relates to its role in measuring the digitization of banking services and the shift from branch-based to self-service digital channels. For the banking sector higher internet banking transaction volumes indicate successful channel migration reducing operational costs associated with branch teller processing and enabling banks to serve growing customer bases without proportional increases in physical infrastructure. Each transaction processed through internet banking costs significantly less than the same transaction processed through a branch teller making channel shift a key driver of banking sector efficiency and profitability. For customers internet banking transaction volumes reflect adoption of self-service digital channels providing convenience, time savings, and 24/7 access to banking services. For businesses internet banking volumes indicate use of web-based cash management tools including bulk payments, payroll processing, supplier payments, and account reconciliation that support efficient financial operations. For policymakers internet banking transaction volumes provide a measure of digital financial inclusion and the effectiveness of policies promoting electronic payment adoption. Historical trends in internet banking transaction volume in Nepal trace the evolution from basic information-only websites to comprehensive transactional platforms. The early internet banking offerings provided only account balance inquiry and transaction history viewing without transaction capabilities limiting transaction volumes to essentially zero for transactional activities. The introduction of transactional internet banking in the mid-2000s enabled customers to initiate fund transfers and bill payments online marking the beginning of meaningful transaction volumes through the channel. Adoption grew gradually as internet connectivity expanded, as banks improved platform functionality and user experience, and as consumers became more comfortable with online financial transactions. The period from 2015 to 2020 witnessed significant acceleration as broadband internet penetration increased, as banks invested in platform improvements, and as digital literacy improved among the population. The COVID-19 pandemic served as a powerful catalyst with lockdowns and health concerns driving customers to shift from branch banking to digital channels including internet banking with many banks reporting record increases in internet banking transaction volumes during this period. The post-pandemic period has seen continued though moderated growth as the initial surge stabilized and as customers adopted multi-channel banking behaviors using a mix of internet banking, mobile banking, and other digital channels. The regulatory framework through NRB's unified directives mandates security standards for internet banking including encryption requirements, multi-factor authentication, session management, and fraud monitoring systems. Transaction limits are calibrated to balance convenience with risk management with higher limits requiring enhanced authentication. Consumer protection includes requirements for transaction notifications, liability frameworks for unauthorized transactions, and customer support channels. Looking forward internet banking transaction volumes face competition from mobile banking applications offering similar functionality through more convenient smartphone interfaces with banks increasingly developing unified digital platforms providing consistent experiences across web and mobile channels and integrating internet banking with other digital services including mobile wallets and QR payments.
Mobile Banking
Transaction count processed through mobile banking applications in Nepal has become the most closely watched indicator of digital financial engagement in the country where smartphone adoption is rapidly increasing and mobile devices serve as the primary digital access point for the majority of the population. Each mobile banking transaction represents a customer using their bank's smartphone application to conduct a financial transaction including fund transfers, bill payments, mobile recharge, QR code payments, ConnectIPS interbank transfers, loan account management, fixed deposit operations, and other banking services accessible through the mobile channel. Transaction volume data is compiled by banks from their mobile banking platforms and reported to Nepal Rastra Bank as part of regulatory reporting on digital banking channel adoption. The volume of mobile banking transactions has grown at extraordinary rates making it the fastest-growing digital banking channel in Nepal and a leading indicator of the country's digital financial transformation. The importance of mobile banking transaction volume as an economic indicator relates to its role as a measure of digital financial inclusion in a mobile-first economy. Nepal's telecommunications revolution has brought mobile connectivity to nearly every corner of the country with smartphone adoption enabling internet access for populations that previously lacked any form of digital connectivity. Mobile banking applications leverage this infrastructure to bring banking services directly to users' pockets eliminating the need to travel to bank branches, wait in queues, or conduct transactions during limited operating hours. For millions of Nepalis particularly those in rural areas, women, youth, and informal sector workers, mobile banking represents their primary and sometimes only channel for engaging with the formal financial system. The volume of mobile banking transactions provides a real-time indicator of how deeply digital financial services have penetrated into these segments and how actively they are using mobile channels for their financial needs. High and growing mobile banking transaction volumes suggest that digital financial inclusion efforts are succeeding with target populations adopting mobile banking for their routine financial transactions. For banks mobile banking transaction volumes indicate return on investment in mobile platform development and the effectiveness of their digital channel strategies. Historical trends in mobile banking transaction volume in Nepal represent one of the most remarkable growth trajectories in the country's financial sector. Mobile banking services were first introduced by pioneering commercial banks in the early 2010s with basic applications offering limited functionality for a niche user base. Transaction volumes during these early years were minimal as the channel was new, application functionality was basic, and smartphone penetration was limited. The inflection point came around 2015 to 2017 when several factors converged including proliferation of affordable Android smartphones, expansion of mobile internet coverage including 3G and 4G LTE networks, substantial bank investments in mobile banking technology, and NRB's policy support for digital financial services. Mobile banking transaction volumes began growing at exponential rates during this period as both user registrations and transaction frequency increased. The COVID-19 pandemic from 2020 to 2022 served as the ultimate catalyst with lockdowns, social distancing, and health concerns driving massive adoption of mobile banking as customers sought safe contactless ways to manage their finances. Banks reported that mobile banking transaction volumes during the pandemic exceeded all prior projections with growth rates that transformed mobile banking from a secondary channel to the primary digital banking channel for many customers. The post-pandemic period has seen continued growth as the habits formed during lockdowns have persisted and as banks have continued to enhance mobile banking functionality with new features including QR payments, investment services, and personalized financial management tools. The regulatory framework through NRB's unified directives requires comprehensive security measures for mobile banking including secure data transmission, biometric authentication capabilities, and session management. Consumer protection includes mandatory transaction alerts, clear fee disclosure, and liability frameworks for unauthorized transactions. Looking forward mobile banking transaction volumes are expected to continue growing as smartphone penetration increases, as banks introduce innovative features including AI-powered financial insights and open banking integrations, and as mobile banking becomes the central hub for customers' financial lives connecting to other digital services through application programming interfaces.
Other Retail Payments
Transaction volume of miscellaneous retail payment instruments not captured in other categories in Nepal includes payments through cheques, demand drafts, and other traditional payment methods that remain in circulation despite the growth of digital alternatives. This category serves as a catch-all for retail payment instruments that do not fit neatly into the primary payment categories tracked by Nepal Rastra Bank including instruments that may be transitional in nature as the payment ecosystem evolves from paper-based to digital systems. The volume of other retail payments provides an important indicator of the residual use of traditional payment methods and the pace at which these instruments are being replaced by electronic alternatives as digital payment adoption progresses across different user segments and transaction types. The importance of other retail payments transaction volume as an economic indicator relates to its role in measuring the completeness of the transition from traditional to digital payment methods. As digital payment adoption increases the volume of other retail payments should theoretically decline as consumers and businesses substitute electronic methods for traditional instruments. However the observed trend in this category may be influenced by several factors including the persistence of specific use cases where traditional instruments retain advantages, the availability and convenience of digital alternatives for particular transaction types, and the demographic and geographic distribution of digital payment adoption. In Nepal's context other retail payments include cheque-based transactions that are not processed through the ECC system, demand drafts issued by banks for remittance and payment purposes, and other paper-based instruments that continue to be used for specific purposes including government payments, institutional transfers, and transactions where a physical instrument is required or preferred. The volume of these transactions provides insights into segments of the economy where digital payment adoption has been slower and where additional efforts may be needed to promote electronic alternatives. Historical trends in other retail payments transaction volume in Nepal reflect the gradual but persistent decline of traditional payment instruments as digital alternatives have become more widely available and convenient. The volume of cheque-based transactions outside the ECC system has declined as electronic cheque clearing has become the standard processing method for most cheque transactions. The use of demand drafts has been significantly reduced by the availability of electronic fund transfer mechanisms including ConnectIPS and mobile banking transfers that offer faster, cheaper, and more convenient alternatives for remitting funds. The volume of other paper-based payment instruments has declined as government agencies, businesses, and individuals have adopted electronic payment methods for their routine transactions. The rate of decline has been influenced by factors including the pace of digital payment infrastructure development, the effectiveness of policies promoting electronic payment adoption, and the persistence of use cases where traditional instruments are required by regulation or preferred by users. The COVID-19 pandemic accelerated the decline of traditional payment instruments as health concerns and lockdowns drove both consumers and businesses to seek contactless digital alternatives. The regulatory environment including NRB's policies promoting digital payments and the legal framework for electronic transactions has supported the transition from traditional to digital payment instruments by providing the legal certainty and consumer protection necessary for electronic payment adoption. Looking forward the volume of other retail payments is expected to continue its gradual decline as digital payment adoption deepens across all segments of the economy and as remaining barriers to electronic payment adoption including digital literacy, trust, and infrastructure access are addressed through ongoing financial inclusion initiatives. However the complete elimination of traditional payment instruments is unlikely in the foreseeable future given their continuing utility for specific use cases and the preference of certain user segments for paper-based instruments.
Point of Sales (POS)
The number of card-based transactions processed at point-of-sale terminals across Nepali merchants provides a direct indicator of the adoption of card payments at physical retail locations. POS transaction volume measures how frequently consumers use debit cards, credit cards, and prepaid cards to make purchases at merchant establishments equipped with POS terminals including retail stores, restaurants, hotels, supermarkets, pharmacies, and service outlets. Each POS transaction represents a consumer choosing to use a card payment instrument at the physical point of sale rather than cash or alternative payment methods. POS transaction volume data is compiled by acquiring banks that deploy and manage POS terminals and is reported to Nepal Rastra Bank as part of payment system statistics providing insight into the development of merchant card acceptance infrastructure and consumer adoption of card payments for in-person retail transactions. The importance of POS transaction volume as an economic indicator relates to its role in measuring the displacement of cash in retail transactions and the formalization of merchant sales through electronic payment records. When consumers use cards at POS terminals each transaction creates an electronic record documenting the sale, the merchant identity, the transaction amount, and the date supporting business accounting, tax compliance, and economic analysis. The shift from cash transactions which leave no electronic trail to POS card transactions represents an improvement in the transparency of retail economic activity. For merchants POS transaction volumes affect their revenue through the sales enabled by card acceptance and their costs through merchant discount rates paid to acquiring banks for transaction processing. Higher POS volumes indicate that card acceptance is driving incremental sales for merchants and that consumers are willing to use cards for their purchases. For the banking sector POS transaction volumes generate fee income through merchant discount rates and interchange fees providing revenue streams for both issuing and acquiring banks. For policymakers POS transaction volumes provide a measure of retail payment modernization and the effectiveness of policies promoting electronic payment adoption at the point of sale. Historical trends in POS transaction volume in Nepal reflect the gradual development of merchant card acceptance infrastructure and the increasing consumer adoption of card payments for retail purchases. The early years of POS deployment in Nepal from the 1990s through the early 2000s saw limited transaction volumes as POS terminals were concentrated in high-end retail establishments, hotels, and restaurants in Kathmandu and other major cities with consumer awareness and acceptance of card payments still developing. The expansion of POS infrastructure accelerated from approximately 2010 onward as banks deployed POS terminals more aggressively, as the cost of POS technology decreased, and as competition among acquiring banks led to more attractive merchant pricing. The introduction of international card schemes including Visa and Mastercard enabled POS transactions at a broader range of merchants and provided consumers with confidence in card payment security. The growth of the tourism sector with increasing numbers of international visitors expecting card payment acceptance drove POS deployment in tourist destinations including Pokhara, Chitwan, and Lumbini. The COVID-19 pandemic had a mixed impact on POS transaction volumes with initial lockdowns reducing in-person retail activity while the shift toward contactless payments including tap-and-go card transactions accelerated. The post-pandemic period has seen recovery in POS transaction volumes as retail activity normalized and as consumer preference for card payments established during the pandemic has persisted. The regulatory framework under NRB's Unified Directives regulates merchant discount rates ensuring reasonable fees for merchants, establishes technical standards for POS terminal security including EMV chip and PIN requirements, and provides consumer protection including liability limits for unauthorized transactions. Looking forward POS transaction volumes face competition from alternative payment methods including QR code payments and mobile wallet services that offer lower acceptance costs for merchants and convenient payment experiences for consumers. However the continued expansion of POS infrastructure including mobile POS solutions enabling small merchants to accept card payments through smartphones and the introduction of contactless POS technology improving transaction speed and convenience suggest continued relevance for POS card payments in Nepal's retail payment ecosystem.
Prepaid Cards
Transaction volume generated by prepaid card usage in Nepal provides an indicator of adoption of alternative payment instruments beyond traditional debit and credit cards. Prepaid card transactions include purchases made at merchant locations using prepaid card funds, ATM cash withdrawals from prepaid cards, online transactions using prepaid card credentials, and other uses of prepaid instruments for payment purposes. The transaction volume metric counts each discrete prepaid card transaction regardless of value providing insight into how frequently prepaid cardholders are using these instruments for their payment needs. Prepaid card transaction volume data is reported by prepaid card issuers including banks and payment service providers to Nepal Rastra Bank as part of regulatory reporting on payment instrument usage. The importance of prepaid card transaction volume as an economic indicator relates to its role in measuring the adoption of payment instruments serving specific market segments including unbanked populations, youth, travelers, and recipients of prepaid benefit programs. Prepaid cards serve as an alternative payment method for users without bank accounts or those seeking spending control mechanisms that limit expenditure to preloaded funds. The volume of prepaid card transactions provides insights into the extent to which these alternative instruments are being used for actual payment activity rather than simply being held as inactive instruments. For financial inclusion initiatives prepaid card transaction volumes indicate whether prepaid programs are achieving their objective of providing usable payment instruments to target populations. For employers using prepaid payroll cards the transaction volume indicates whether employees are actively using the cards for their spending needs or converting the funds to cash through ATM withdrawals. For government agencies distributing benefits through prepaid cards the transaction volume indicates the effectiveness of electronic benefit distribution programs. For the financial sector prepaid card transaction volumes generate fee income through transaction fees, ATM withdrawal fees, and merchant discount rates contributing to the revenue of prepaid card issuers. Historical trends in prepaid card transaction volume in Nepal reflect the relatively small but growing segment of the payment instrument market. The early prepaid card market was characterized by limited transaction activity as cards were primarily used for specific purposes such as corporate gifting or employee incentives with cardholders often using the full value in a single transaction or ATM withdrawal rather than using the card for ongoing payment activity. The growth of prepaid card transaction volumes has been driven by several factors including the introduction of reloadable prepaid cards that encourage ongoing usage, the expansion of merchant acceptance of prepaid cards through international card scheme networks, and the development of specific prepaid programs for travel, payroll, and benefit distribution. The COVID-19 pandemic had a mixed impact on prepaid card transaction volumes with reduced travel activity affecting travel prepaid card usage while increased digital payment adoption and government benefit distribution programs supported transaction volumes for certain prepaid card categories. The regulatory framework under NRB's unified directives establishes requirements for prepaid card issuance and operation including maximum load limits, know-your-customer requirements calibrated to card type, and consumer protection provisions including clear fee disclosure and liability limits. Looking forward prepaid card transaction volumes will be influenced by continued development of prepaid programs for specific market segments including youth banking, employee benefits, and government benefit distribution. The integration of prepaid cards with digital wallet services enabling funding and management through mobile applications may enhance the utility and transaction activity of prepaid instruments. However competition from debit cards offering similar functionality without the need for separate preloading and from digital wallets providing more convenient mobile-based payment experiences will continue to shape the trajectory of prepaid card transaction volumes.
QR-Based Payments
The total number of QR code payment transactions processed in Nepal has become one of the most important indicators of digital payment adoption in the country's rapidly evolving payment ecosystem. QR payments allow consumers to make payments by scanning a quick response code displayed by a merchant using their mobile banking application or digital wallet with the transaction amount, merchant identification, and payment authorization processed electronically in real time. The transaction volume metric counts each successful QR payment transaction regardless of monetary value providing insight into how frequently Nepali consumers are using scan-and-pay functionality for their purchases at merchant locations ranging from large retail chains to small street vendors and local shops. QR payment transaction volume data is compiled by banks and payment service providers that process QR transactions and reported to Nepal Rastra Bank as part of payment system statistics. The importance of QR payment transaction volume as an economic indicator relates to its role as a measure of the most accessible and widely adopted digital payment method for in-person retail transactions in Nepal. QR payments have become the most commonly used digital payment method at merchant locations driven by interoperability standards established through the Nepal QR standard and the widespread adoption of QR acceptance by merchants of all sizes. The low cost of QR acceptance requiring only a printed QR code and a smartphone makes it accessible to micro and small merchants who could not justify the investment in traditional POS terminal infrastructure. This has enabled QR payment acceptance to reach merchants in rural areas, informal markets, and remote locations where other digital payment infrastructure is not available. For consumers QR payments offer a convenient payment experience requiring only a smartphone with a mobile banking or wallet application eliminating the need to carry cash or cards. The volume of QR payment transactions provides a direct measure of consumer adoption of digital payments for everyday purchases including groceries, transportation, food and beverages, retail shopping, and services. For merchants QR payment transaction volumes reflect the extent to which their customers are using digital payment methods and may influence decisions about additional payment infrastructure investment. Historical trends in QR payment transaction volume in Nepal represent one of the most remarkable growth stories in the country's payment ecosystem. QR payments were introduced in Nepal by mobile wallet providers including eSewa and Khalti beginning around 2015 with early transaction volumes limited as the concept was new, merchant acceptance was limited, and consumer awareness was low. The real inflection point came with the introduction of the Nepal QR standard developed by NCHL and NRB which established a common QR code format that could be scanned by any participating banking or wallet application enabling interoperability between different payment systems. This standardization eliminated the need for merchants to display separate QR codes for each payment provider and allowed consumers to use any participating app to scan any merchant's Nepal QR code. Following the launch of Nepal QR transaction volumes began growing at exponential rates as banks integrated QR payment functionality into their mobile banking applications, as payment service providers promoted QR acceptance to their merchant networks, and as consumers discovered the convenience of scan-and-pay. The COVID-19 pandemic from 2020 to 2022 accelerated QR payment adoption dramatically as consumers and merchants sought contactless payment methods to reduce physical contact and virus transmission risk. QR payments were promoted by health authorities as a safer alternative to cash and merchants that had previously been reluctant to accept digital payments adopted QR codes to accommodate changing consumer preferences. The post-pandemic period has seen continued strong growth in QR payment transaction volumes as the convenience and efficiency of QR payments have made them a preferred payment method for a growing range of transactions. The regulatory framework establishes technical standards for QR code interoperability through the Nepal QR standard and addresses security considerations including secure QR code generation and fraud prevention. Looking forward QR payment transaction volumes are expected to continue growing as QR acceptance expands to additional merchant categories including transportation, healthcare, education, and government services. The integration of QR payments with international payment systems enabling cross-border QR payments for tourists will further expand the addressable market for QR transactions. The continued development of QR payment functionality including merchant-presented QR for large transactions and customer-presented QR for identification and loyalty integration will enhance the utility and adoption of QR payments in Nepal's retail economy.
RTGS
The number of transactions settled through the Real Time Gross Settlement system in Nepal reflects high-value fund transfers between financial institutions for securities settlement, interbank lending, and large corporate payments. RTGS transaction volume counts each individual transfer processed through the system including interbank money market transactions, government securities settlement, foreign exchange settlement, large corporate payments, and settlement of net positions from other payment systems. Unlike retail payment systems processing millions of transactions, RTGS typically processes a lower volume of transactions but with exceptionally high monetary values reflecting the wholesale nature of the system. RTGS transaction volume data is compiled by Nepal Rastra Bank as the system operator and provides a key indicator of activity in the wholesale financial market and the movement of high-value funds through the banking system. The importance of RTGS transaction volume as an economic indicator relates to its role in measuring activity in Nepal's wholesale financial markets and the functioning of the banking system's core settlement infrastructure. The volume of RTGS transactions provides insights into the level of interbank lending and borrowing activity in the money market with implications for banking system liquidity and monetary policy transmission. Higher RTGS volumes for interbank transactions suggest active money market participation and efficient redistribution of liquidity among banks. The volume of RTGS transactions for securities settlement provides an indicator of activity in Nepal's government securities market including primary market auctions and secondary market trading. The volume of RTGS transactions for foreign exchange settlement reflects the level of activity in the interbank foreign exchange market and international payment flows. The volume of RTGS transactions for large corporate payments provides insights into high-value business transactions and economic activity at the wholesale level. For financial stability monitoring RTGS transaction volumes provide early warning indicators of potential stress in the banking system with unusual patterns of interbank settlement activity potentially signaling liquidity problems or operational issues at participating institutions. Historical trends in RTGS transaction volume in Nepal reflect the development of financial markets and the growing sophistication of interbank financial transactions. The RTGS system was established in the early 2010s as part of a comprehensive payment system modernization program with initial transaction volumes reflecting the limited range of interbank transactions processed through the centralized system. Transaction volumes grew progressively as more banks became direct participants, as financial markets developed, and as the range of transactions processed through RTGS expanded. The growth of the government securities market with increasing primary auction activity and secondary market trading contributed to RTGS volume growth. The development of the interbank money market with banks increasingly using the market for liquidity management supported RTGS transaction growth. The expansion of foreign exchange trading activity as Nepal's economy integrated more closely with international markets added to RTGS volumes. The COVID-19 pandemic period saw some impact on RTGS transaction volumes as economic disruption affected financial market activity but volumes recovered as markets normalized. The regulatory framework for RTGS operates under NRB's authority as the central bank with the system governed by operating rules defining participation criteria, processing schedules, settlement arrangements, and risk management requirements. RTGS participants must maintain settlement accounts at NRB with adequate balances and comply with operational procedures for transaction initiation and confirmation. Looking forward RTGS transaction volumes will be influenced by continued growth of Nepal's financial markets, development of new financial instruments and services, expansion of RTGS participation to additional financial institutions, and potential implementation of system enhancements including extended operating hours and ISO 20022 messaging standards that could support new transaction types and improve processing efficiency.
Wallet
The total transaction volume processed through mobile wallet applications in Nepal provides a critical indicator of the adoption and usage of digital wallet services for a wide range of financial transactions. Wallet transactions include peer-to-peer transfers between wallet users, merchant payments using QR codes or merchant identification numbers, utility bill payments, mobile recharges, e-commerce purchases through integrated payment gateways, ticket bookings for transportation and entertainment, government fee payments, and other digital wallet services. The transaction volume metric counts each discrete transaction processed through wallet platforms providing insight into how frequently wallet users are engaging with digital wallet services for their financial needs. Wallet transaction volume data is reported by licensed payment service providers operating wallet services including eSewa, Khalti, IME Pay, and other NRB-licensed wallet operators to Nepal Rastra Bank as part of regulatory reporting. The importance of wallet transaction volume as an economic indicator relates to its role as a measure of consumer adoption of digital payment services in a mobile-first economy. Wallet services have been at the forefront of digital payment adoption in Nepal bringing electronic payment capabilities to millions of users who may not have bank accounts or who prefer the convenience and integrated service offering of wallet platforms. The volume of wallet transactions provides a real-time measure of how actively wallet users are incorporating digital payments into their daily financial activities with higher transaction volumes indicating deeper integration of wallet services into users' financial lives. For wallet service providers transaction volumes are the primary driver of revenue through transaction fees, merchant discount rates, and value-added service charges making volume growth essential for the commercial viability of wallet platforms. For merchants wallet transaction volumes indicate customer adoption of digital payment methods and the return on investment in wallet acceptance infrastructure. For policymakers wallet transaction volumes provide a measure of digital payment adoption among segments of the population that may not be captured by traditional banking metrics including unbanked and underbanked users who use wallet services as their primary financial service platform. Historical trends in wallet transaction volume in Nepal represent one of the most remarkable growth trajectories in the country's financial sector. The digital wallet concept was introduced to Nepal by eSewa which launched in 2010 offering basic fund transfer and bill payment functionality through a mobile application and web platform. Early transaction volumes were modest as the concept was new, user adoption was limited, and the range of available services was narrow. The entry of Khalti in 2017 and IME Pay brought additional competition and innovation to the wallet market driving improvements in user experience, expansion of service offerings, and increased marketing investment that grew the overall market. The introduction of QR code payment functionality allowing wallet users to make payments at merchant locations by scanning QR codes dramatically expanded the use cases for wallet transactions beyond person-to-person transfers and bill payments to include in-person retail purchases. The launch of the Nepal QR standard enabled interoperability between wallet services and bank mobile banking applications further expanding the transaction potential for wallet services. The COVID-19 pandemic from 2020 to 2022 served as the ultimate catalyst for wallet transaction volumes as lockdowns, social distancing, and health concerns drove massive shifts in consumer payment behavior toward contactless and digital payment methods. Wallet service providers reported record transaction volumes during this period as consumers turned to digital wallets for their payment needs. The growth trajectory has continued in the post-pandemic period as habits formed during lockdowns persisted and as wallet providers expanded their service offerings with new features including savings products, investment services, insurance distribution, and lending capabilities that deepen user engagement and drive additional transaction activity. The regulatory framework under the Payment and Settlement Act 2072 requires licensed wallet operators to meet capital requirements, maintain security standards, implement customer due diligence procedures, and comply with consumer protection requirements. Transaction limits restrict maximum wallet balances and per-transaction values with enhanced limits for users completing full identity verification. Looking forward wallet transaction volumes are expected to continue growing as smartphone penetration increases, as wallet services expand to new use cases and integrate with additional merchant categories, as interoperability with bank accounts and other payment systems improves, and as wallet platforms evolve into comprehensive digital financial hubs offering an expanding range of financial services beyond payments.
Transaction Value
ATM-Cash Withdrawal
The total value of cash withdrawn through ATMs across Nepal measured in NPR millions tracks the aggregate amount of physical currency dispensed through the national ATM network in a given period. This value metric provides a direct measure of the monetary volume of cash being distributed to the public through automated teller machines reflecting the economy's demand for physical currency for transactional purposes. Value data is compiled by Nepal Rastra Bank from reporting submitted by all banks and financial institutions operating ATM networks aggregated at the national level and reported on monthly, quarterly, and fiscal year bases. The total value of ATM cash withdrawals is a critical input for currency management operations including printing and distribution of banknotes, management of cash inventories at bank branches and ATM replenishment centers, and planning of currency processing and destruction facilities. ATM cash withdrawal values exhibit strong seasonal patterns in Nepal with significant increases during major festivals including Dashain and Tihar when households require additional cash for celebrations, gift-giving, and travel expenses. The importance of ATM cash withdrawal value as an economic indicator relates to its role in measuring the monetary scale of cash usage in the economy and the efficiency of the cash distribution system. The aggregate value of ATM withdrawals provides insight into the total amount of cash that households and businesses are accessing through formal banking channels reflecting both the overall level of economic activity and the population's reliance on cash as a medium of exchange. Changes in ATM withdrawal values over time indicate shifts in consumer payment behavior with declining values suggesting successful transition to digital payment alternatives while stable or increasing values may indicate that cash demand remains resilient despite digital payment growth. The ratio of ATM withdrawal value to total personal consumption expenditure provides a useful benchmark for assessing the proportion of consumer spending funded through cash withdrawals. For Nepal's tourism industry ATM withdrawal values at tourist destinations provide an indicator of visitor spending patterns and the contribution of tourism to local economies. During economic disruptions including natural disasters, political instability, or financial sector stress, the value of ATM withdrawals may increase as the public seeks to hold physical cash as a safe haven asset providing insights into public confidence in the banking system. Historical trends in ATM cash withdrawal values in Nepal reflect the complex relationship between economic growth, financial sector expansion, and evolving payment preferences. During the early period of ATM deployment withdrawal values grew rapidly as the number of ATMs expanded and bank account penetration increased. The growth in withdrawal values during this period was driven by expansion of the formal economy and increasing monetization of economic activity. The period from approximately 2010 to 2020 witnessed continued growth in total withdrawal values but at a moderating rate as digital payment adoption began affecting withdrawal behavior. The COVID-19 pandemic created significant volatility with initial lockdowns causing sharp declines in withdrawal values as economic activity contracted and as consumers reduced travel to public places, followed by recovery as restrictions eased. The post-pandemic period has seen more complex patterns with some segments of the population reducing cash usage while others maintain their reliance on cash. The average value per ATM withdrawal provides additional insight into withdrawal behavior with higher average values suggesting larger individual withdrawals that may indicate cash hoarding or higher-value cash transactions while lower average values suggest more frequent smaller withdrawals for daily cash needs. The regulatory framework including NRB's oversight of ATM fees and cash management standards affects withdrawal values by influencing consumer behavior and bank cash management practices. Looking forward ATM withdrawal values will be influenced by the pace of digital payment adoption, the evolution of merchant payment acceptance infrastructure, the development of alternative cash access mechanisms including cash-back at point of sale and agent-assisted cash-out, and the potential introduction of central bank digital currency that could provide a digital alternative to physical cash reducing demand for ATM withdrawals in the long term.
Branchless Banking
The total transaction value processed through branchless banking agents in Nepal measured in NPR millions indicates the monetary volume of financial flows reaching rural and remote areas through agent networks. This value metric aggregates the total rupees of all transactions conducted at branchless banking agent locations including cash deposits, cash withdrawals, fund transfers, bill payments, loan repayments, and other banking services that agents provide on behalf of their sponsoring financial institutions. Value data is compiled by banks operating branchless banking networks and reported to Nepal Rastra Bank providing insight into the monetary scale of financial activity occurring through agent-based channels. The value of branchless banking transactions provides a direct measure of the financial flows reaching previously unbanked populations and the extent to which agent-based banking is integrating remote communities into the formal financial system. The importance of branchless banking transaction value as an economic indicator relates to its role in measuring the monetary magnitude of financial inclusion impacts. While transaction counts indicate how frequently services are used, transaction values reveal the actual amount of money moving through agent networks reflecting the economic significance of these financial flows for recipient communities. High transaction values in remote areas served by branchless banking agents suggest that significant economic activity including remittance receipts, agricultural proceeds, and government benefit payments are flowing through agent channels contributing to local economic development. The composition of transaction values between cash-in and cash-out provides insights into the economic characteristics of served areas with high cash-in values suggesting surplus cash being absorbed into the formal system while high cash-out values indicate reliance on external fund sources including remittances and government transfers. For Nepal's remittance-dependent economy the value of branchless banking transactions is particularly significant as it reflects the distribution of remittance funds to recipient households in rural areas where international remittances are a primary source of household income. The growth in transaction values over time indicates deepening of agent-based banking services and increasing trust in the agent model as a channel for higher-value financial transactions. Historical trends in branchless banking transaction values reflect the evolution of agent-based banking from small-scale experimental programs to significant channels for financial flows. Early transaction values were modest as agents were authorized to process only limited transaction amounts and consumer trust in agent services was developing. The increase in transaction values over time has been driven by several factors including increases in per-transaction and daily cumulative transaction limits as NRB adjusted regulations based on market experience and risk assessment, expansion of the range of services available through agent channels including higher-value services such as loan disbursements and fixed deposit operations, and growing consumer trust in agent services leading to greater willingness to conduct higher-value transactions through agent channels. The COVID-19 pandemic highlighted the importance of branchless banking as a channel for distributing government relief payments and enabling financial transactions when bank branches were operating with reduced capacity. The regulatory framework establishes transaction limits balancing accessibility with risk management with higher limits applicable to transactions with enhanced customer verification. Consumer protection requirements ensure that consumers using agent services for higher-value transactions have adequate safeguards. Looking forward the value of branchless banking transactions will continue growing as agent networks expand, as transaction limits are adjusted to accommodate evolving needs, as new higher-value banking services are made available through agent channels, and as the integration of agent banking with digital payment ecosystems enables seamless movement of funds between agent accounts and digital wallets and bank accounts.
ConnectIPS
The total value of interbank fund transfers processed through the ConnectIPS system in Nepal measured in NPR millions reflects the monetary volume of electronic retail payments flowing between bank accounts at different financial institutions. This value metric aggregates the total rupees of all ConnectIPS transactions providing insight into the financial significance of interbank electronic transfers for Nepal's economy. ConnectIPS transaction value data is compiled by Nepal Clearing House Limited from the processing records of the ConnectIPS switch and reported to Nepal Rastra Bank as part of payment system statistics. The value of ConnectIPS transactions provides a measure of the adoption of electronic interbank fund transfers for financial transactions of varying monetary sizes and the extent to which electronic transfers are displacing traditional methods including cash, cheques, and bank drafts for interbank fund movement. The importance of ConnectIPS transaction value as an economic indicator relates to its role in measuring the monetary volume of interbank retail payment flows and the efficiency of the payment system in facilitating these transfers. The total value of ConnectIPS transactions provides insight into the amount of money moving between bank accounts at different financial institutions reflecting economic activity including salary payments, business-to-business transactions, person-to-person transfers, and government disbursements. Growth in ConnectIPS transaction values indicates increasing reliance on electronic interbank transfers for financial transactions of various sizes and successful displacement of traditional payment methods. The average value per ConnectIPS transaction provides additional insight into the usage patterns of the system with lower average values suggesting frequent smaller transfers for everyday payment needs and higher average values indicating use for larger payments such as business settlements or institutional transfers. For Nepal's remittance-dependent economy ConnectIPS transaction values reflect the domestic distribution of remittance funds as recipients transfer money received in their accounts to family members or for expenses. Historical trends in ConnectIPS transaction values reflect the adoption journey of electronic interbank transfers in Nepal. ConnectIPS was launched in 2014 with initial transaction values growing slowly as the system established its user base and processing infrastructure. The growth in transaction values accelerated as mobile banking applications integrated ConnectIPS functionality, as transaction fees were reduced or eliminated by banks promoting digital adoption, and as consumer awareness and trust in electronic transfers increased. The COVID-19 pandemic marked a significant inflection point with transaction values surging as lockdowns drove consumers to digital alternatives for their interbank fund transfers. The post-pandemic period has seen continued growth in transaction values as habits formed during lockdowns persisted. The regulatory framework addresses transaction processing standards including value limits for different transaction types and settlement arrangements ensuring timely final settlement of interbank obligations. Looking forward ConnectIPS transaction values will continue growing as digital payment adoption deepens across all demographic segments of Nepal's population and as the system's functionality expands to support higher-value transactions and new use cases including bulk payments and automated recurring transfers. The integration of ConnectIPS with emerging payment platforms and the development of open banking APIs enabling seamless integration of ConnectIPS functionality into third-party applications will further drive growth in transaction values by expanding the channels through which ConnectIPS transfers can be initiated and increasing the convenience and accessibility of the service for a broader range of use cases.
Credit Cards
The total value of credit card transactions processed in Nepal measured in NPR millions reflects the monetary volume of consumer spending and cash advances conducted through credit cards issued by Nepali financial institutions. This value metric aggregates the total rupees of all credit card transactions including point-of-sale purchases, online transactions, cash advances, and recurring payments providing insight into the financial scale of credit-fueled consumer spending in Nepal's economy. Credit card transaction value data is compiled by issuing and acquiring banks and reported to Nepal Rastra Bank as part of payment system statistics. The value of credit card transactions provides a measure of consumer access to revolving credit and the extent to which credit cards are being used as a payment instrument for various categories of spending. Understanding the value of credit card transactions helps financial institutions assess the performance of their credit card portfolios, evaluate consumer borrowing patterns, and identify opportunities for product enhancement. The importance of credit card transaction value as an economic indicator extends to its role in measuring consumer credit utilization, spending behavior, and retail sector activity. The total value of credit card transactions reflects the amount of consumer spending that is being financed through revolving credit facilities rather than funded from available cash balances providing insights into consumer confidence, willingness to take on debt, and the role of credit in supporting consumption. Changes in credit card transaction values over time indicate shifts in consumer spending patterns and credit utilization with increases suggesting growing consumer confidence and willingness to use credit while declines may indicate economic uncertainty and reduced consumer spending. The distribution of credit card transaction values across merchant categories provides insights into consumer spending priorities and the sectors benefiting from credit-supported consumption. For the retail and hospitality sectors credit card transaction values represent a significant and growing share of total sales particularly for higher-value purchases such as electronics, travel bookings, hotel accommodations, and dining experiences. For financial institutions credit card transaction values directly affect revenue from merchant discount fees, interchange income, and interest charges on revolving balances making value growth essential for credit card portfolio profitability. Historical trends in credit card transaction values in Nepal reflect the development of the consumer credit market and adoption of credit cards as a mainstream payment instrument. Credit cards were introduced in Nepal in the 1990s with initial transaction values limited to a small affluent customer segment using cards primarily for travel and high-end retail purchases. The growth in credit card transaction values accelerated from approximately 2010 as banks expanded card issuance, as merchant acceptance networks grew, and as consumers became more comfortable with credit card usage. The introduction of installment payment options and rewards programs increased average transaction values by encouraging cardholders to use credit cards for larger purchases. The expansion of e-commerce and online travel booking created new high-value transaction categories for credit card usage. The COVID-19 pandemic caused a temporary decline in credit card transaction values as overall consumer spending fell and travel-related spending was severely curtailed but the recovery has been strong as consumer spending has rebounded and as the shift toward electronic payments has persisted. The regulatory framework under NRB's Unified Directives sets maximum interest rates on revolving balances affecting the cost of credit card borrowing and influencing transaction values by affecting cardholder decisions about whether to use credit cards for larger purchases. Consumer protection provisions including liability limits and dispute resolution mechanisms support consumer confidence in using credit cards for high-value transactions. Looking forward credit card transaction values will be influenced by continued economic growth, expansion of the formal employment sector creating new eligible cardholders, development of merchant acceptance infrastructure, introduction of innovative card products with enhanced features and rewards, and competition from alternative credit products including buy-now-pay-later services and digital lending platforms that may affect consumer preferences for credit card usage.
Cross Border QR Acquiring
The monetary value of cross-border QR payment transactions acquired in Nepal measured in NPR millions tracks the inflow of international visitor spending through QR-based payment channels. This emerging indicator captures the value of purchases made by international tourists and other foreign visitors at Nepali merchants using their home-country mobile payment applications to scan Nepal QR codes for payment. Cross-border QR acquiring value data is compiled by acquiring banks and payment service providers processing these transactions and reported to Nepal Rastra Bank as part of cross-border payment statistics. The value of cross-border QR payments provides a direct measure of the contribution of this payment channel to tourism expenditure capture and the extent to which Nepal's payment infrastructure is integrated with international digital payment systems. As cross-border QR acquiring expands to include additional international payment networks and visitor source markets, the value of these transactions will become an increasingly important indicator of international payment flows and tourism sector performance. The importance of cross-border QR acquiring value as an economic indicator relates directly to its role in measuring the capture of international tourist spending within Nepal's formal financial system. International tourism is one of Nepal's largest sources of foreign exchange earnings with visitors contributing billions of rupees annually to the economy through spending on accommodation, food and beverages, transportation, tours and activities, shopping, and other services. The value of cross-border QR payments represents a portion of this tourism expenditure that is being processed through digital payment channels providing an electronic record of visitor spending that supports economic analysis and tax compliance. Higher cross-border QR payment values suggest that international visitors are finding the QR payment channel convenient and are using it for a significant portion of their in-country spending. For Nepali merchants the value of cross-border QR payments represents incremental sales from international visitors who might not have made purchases if QR payment was not available. For the tourism sector the growth of cross-border QR payment values indicates successful adoption of digital payment infrastructure by tourism businesses and positive visitor experiences with the payment system. Historical trends in cross-border QR acquiring values reflect the early stage of this payment channel and its growth as interoperability arrangements with international payment systems are established. The initial cross-border QR capability was enabled through linkage with India's UPI system allowing the largest source market of international visitors to Nepal to make QR payments using their Indian mobile payment applications. Early transaction values were modest as the service was rolled out gradually and as awareness among potential users was built through marketing and word-of-mouth. The growth trajectory has been positive with transaction values increasing as more merchants enabled cross-border QR acceptance, as awareness among international visitors grew, and as tourist arrival numbers recovered following pandemic disruptions. The expansion of cross-border QR acquiring to additional international payment networks will expand the addressable visitor base and potentially increase transaction values. The regulatory framework addresses foreign exchange conversion and settlement arrangements ensuring that cross-border QR payments are processed in compliance with Nepal's foreign exchange regulations and that merchants receive settlement in Nepali rupees. Anti-money laundering and counter-financing of terrorism compliance requirements apply to cross-border transactions with appropriate due diligence measures for international payment flows. Looking forward the value of cross-border QR acquiring transactions will be influenced by the recovery and growth of international tourist arrivals, the expansion of merchant cross-border QR acceptance across a broader range of business categories, the addition of interoperability arrangements with additional international payment systems and source markets, and the evolution of the regulatory framework supporting cross-border digital payments while maintaining appropriate safeguards for financial integrity and consumer protection.
Debit Cards
The aggregate value of debit card transactions including point-of-sale purchases, e-commerce payments, and other card transactions measured in NPR millions provides a core indicator of consumer spending through direct access to deposited funds. This value metric aggregates the total rupees of all debit card transactions processed through Nepal's payment systems providing insight into the monetary volume of retail spending that is being conducted through card-based electronic payments rather than cash. Debit card transaction value data is compiled by issuing and acquiring banks and reported to Nepal Rastra Bank as part of payment system statistics. The value of debit card transactions reflects the extent to which consumers are using their bank account funds for electronic payments at merchant locations, online platforms, and service providers. Understanding debit card transaction values helps financial institutions assess the performance of their debit card programs, evaluate consumer spending patterns, and identify opportunities for merchant acquisition and transaction growth. The importance of debit card transaction value as an economic indicator relates to its role in measuring the displacement of cash in retail transactions and the formalization of consumer spending through electronic payment records. When consumers use debit cards for purchases each transaction creates an electronic record of the payment amount, merchant identity, and transaction details that documents economic activity and supports tax compliance and economic analysis. The total value of debit card transactions provides a measure of the volume of consumer spending that has transitioned from cash to electronic payments reflecting progress toward the government's digital payment promotion objectives. For merchants debit card transaction values represent sales revenue processed through card payments that come with the benefits of reduced cash handling costs and risks but also the costs of merchant discount fees. For the banking sector debit card transaction values generate fee income through merchant discount rates and interchange fees contributing to the revenue models of issuing and acquiring banks. For policymakers and economic analysts debit card transaction values provide a real-time indicator of consumer spending trends complementing traditional economic data sources and supporting more timely assessment of economic conditions. Historical trends in debit card transaction values in Nepal reflect the evolution of debit cards from simple ATM access tools to widely used payment instruments for retail transactions. In the early years of debit card issuance transaction values were dominated by ATM cash withdrawals with point-of-sale purchases representing a very small fraction of total values. The expansion of POS terminal deployment and the introduction of international debit card schemes enabled debit card usage at a growing number of merchant locations gradually increasing the value of POS debit transactions. The adoption of debit cards for e-commerce transactions created a new high-value transaction category as consumers used their debit cards for online purchases of goods, travel services, and digital products. The period from 2010 witnessed steady growth in debit card transaction values as card issuance expanded, merchant acceptance broadened, and consumer comfort with card payments increased. The COVID-19 pandemic accelerated the shift toward debit card usage for retail transactions as consumers sought contactless payment methods and as merchants adapted to changing consumer preferences. The post-pandemic period has seen continued growth in debit card transaction values as the infrastructure for card acceptance has continued to expand and as consumer habits formed during the pandemic have persisted. The regulatory framework under NRB's Unified Directives regulates merchant discount rates ensuring reasonable fees for merchants, establishes technical standards for debit card security, and provides consumer protection including liability limits for unauthorized transactions that support consumer confidence in using debit cards for higher-value transactions. Looking forward debit card transaction values will be influenced by continued expansion of merchant card acceptance infrastructure, adoption of contactless debit card technology enabling convenient tap-and-pay transactions for a broader range of purchase values, integration of debit cards into digital wallet services enabling mobile-based card payments, and competition from alternative payment methods including QR-based payments and mobile wallet services that may capture transaction value that would otherwise flow through debit card channels.
E-Commerce
The total monetary value of online payment transactions processed through e-commerce platforms in Nepal measured in NPR millions tracks the growth of the country's digital commerce economy. This value metric aggregates the total rupees of all payments processed through e-commerce payment gateways for goods and services purchased through websites, mobile applications, social commerce channels, and other digital platforms. The value of e-commerce transactions encompasses a wide range of purchase categories including physical goods from online retail platforms, digital products and services, travel and hospitality bookings, event tickets, educational course enrollments, healthcare services, food delivery, and subscription services. E-commerce transaction value data is compiled from payment gateway operators, acquiring banks, and e-commerce platforms and reported to Nepal Rastra Bank as part of payment system statistics. The value of e-commerce transactions provides a direct measure of the economic significance of online commerce in Nepal's retail economy and the extent to which consumers are shifting their spending from physical stores to digital channels. The importance of e-commerce transaction value as an economic indicator relates to its role in measuring the digital transformation of Nepal's retail sector and the growth of the digital economy. The total value of e-commerce transactions reflects consumer willingness to make purchasing decisions based on digital product information, trust in online payment systems, and reliance on delivery and logistics networks for fulfillment. Growth in e-commerce transaction values indicates expansion of the addressable market for online merchants, increasing consumer comfort with online shopping, and development of the infrastructure supporting digital commerce including payment gateways, logistics networks, and customer service platforms. For businesses e-commerce transaction values represent revenue generated through digital channels enabling merchants to reach customers beyond their geographic location and serving as a growth driver for SMEs that can access national markets through online platforms. For the financial sector e-commerce transaction values drive demand for payment processing services generating fee income for payment gateway operators, acquiring banks, and card schemes. For policymakers e-commerce transaction values provide insights into the effectiveness of digital infrastructure investments, the evolution of online consumer behavior, and the development of regulatory frameworks for electronic commerce and digital payments. Historical trends in e-commerce transaction values in Nepal reflect the relatively late but rapidly accelerating adoption of online shopping. Early e-commerce transaction values from approximately 2010 to 2015 were modest with limited online retail offerings and consumer preference for cash on delivery limiting the value of online payment transactions. The growth of reliable internet connectivity through mobile networks, proliferation of smartphones, and introduction of user-friendly payment gateways drove increasing e-commerce transaction values from 2015 onward. The COVID-19 pandemic from 2020 to 2022 marked a dramatic acceleration with lockdowns and health concerns driving consumers to shift purchasing to online channels for categories including groceries, household supplies, medicines, and other essential goods that had previously been purchased in-person. This pandemic-driven surge represented a structural increase in e-commerce transaction values that has largely persisted in the post-pandemic period. The growth of social commerce through platforms like Facebook and Instagram where consumers discover and purchase products directly through social media content has created new channels for e-commerce transactions. The regulatory framework under the Electronic Transactions Act 2063 and NRB's payment system regulations establishes security standards for online payment processing, data protection obligations, and consumer protection requirements including clear disclosure of pricing, delivery terms, and return policies. Looking forward e-commerce transaction values will be influenced by continued improvements in internet connectivity and logistics infrastructure, expansion of online retail offerings across more product categories and merchant types, development of consumer trust in online shopping and payment security, and potential entry of international e-commerce platforms into the Nepali market that could accelerate consumer adoption of online shopping.
ECC
The total value of cheques cleared through the Electronic Cheque Clearing system in Nepal measured in NPR millions reflects the monetary volume of cheque-based payments in the country's financial system. This value metric aggregates the total rupees of all cheques processed through the ECC system providing insight into the financial significance of cheques as a payment instrument for various transaction types. ECC value data is compiled by Nepal Clearing House Limited from the cheque clearing records and reported to Nepal Rastra Bank as part of payment system statistics. The value of ECC transactions provides a measure of the continuing role of cheques in facilitating payments for business transactions, government disbursements, institutional fund transfers, and other high-value payments where cheques remain a preferred or required payment method. Understanding the value of ECC transactions helps banks and financial institutions assess their cheque processing volumes, manage liquidity planning for cheque settlement, and evaluate the pace of transition from cheque-based to electronic payment methods. The importance of ECC transaction value as an economic indicator relates to its role in measuring the monetary magnitude of cheque usage and the residual significance of this traditional payment instrument in Nepal's payment mix. While cheque transaction counts may be declining as users switch to electronic alternatives, the value of individual cheque transactions tends to be relatively high making the total value of ECC transactions a significant component of overall payment flows even as cheque volumes decline. The value of ECC transactions is concentrated in specific use cases including business-to-business payments where cheques provide a documented record of payment and familiar settlement process, government disbursements where regulatory requirements may mandate cheque issuance for certain payment types, institutional fund transfers where the cheque's features including stop payment and post-dating capabilities are valued, and legal settlements where cheques have established evidentiary standing. For businesses that receive large-value payments by cheque the value of ECC transactions affects their cash flow management and working capital cycles with faster electronic cheque clearing through ECC improving access to funds compared to the traditional physical clearing system. Historical trends in ECC transaction values in Nepal reflect the gradual decline of cheque usage as electronic alternatives have become more available and convenient while the average value per cheque transaction has tended to increase. The introduction of the ECC system in the early 2010s initially supported cheque usage by improving clearing efficiency and reducing settlement times making cheques more attractive for users who valued the instrument's features. However as electronic alternatives including ConnectIPS, internet banking transfers, and mobile banking payments have become more widely adopted for a broader range of transaction types and values, the total value of cheques processed through ECC has begun to decline. The rate of decline has been tempered by the tendency for higher-value transactions to remain with cheques as users continue to value the cheque's features for large payments including the physical documentation, stop payment capability, and legal standing. The COVID-19 pandemic accelerated the decline in ECC transaction values as businesses and individuals shifted to electronic payment methods to avoid physical document handling and as government agencies and institutions adopted electronic alternatives. The regulatory framework for ECC operates under NRB's oversight of payment systems with rules governing clearing timelines, participant obligations, and settlement arrangements that support the efficient processing of cheque values. Looking forward the value of ECC transactions is expected to continue its gradual decline as the remaining use cases for cheque payments are progressively addressed by electronic alternatives. However the decline in total value may be slower than the decline in transaction counts if the average value per cheque transaction continues to increase as users retain cheques for their highest-value payments while shifting routine payments to electronic channels. The complete elimination of cheque payment values from Nepal's payment system is not expected in the foreseeable future given the continuing utility of cheques for specific high-value use cases where the instrument's unique features remain valued by users and required by regulatory or institutional requirements.
Faster Payment Systems
The total value of transactions processed through real-time payment systems in Nepal measured in NPR millions captures the growing monetary flows through instant payment infrastructure. This value metric aggregates the total rupees of all faster payment transactions including ConnectIPS real-time interbank transfers, instant mobile wallet transfers, QR code payments authorized and confirmed in real time, and other payment mechanisms where funds are available to the payee within seconds of transaction initiation. Faster payment system value data is compiled from payment systems and service providers operating real-time infrastructure including NCHL for ConnectIPS, payment service providers for wallet and QR transactions, and banks for instant transfer services and reported to Nepal Rastra Bank as part of payment system statistics. The value of faster payment transactions provides a measure of the monetary significance of instant payments in Nepal's economy and the extent to which consumers and businesses are relying on real-time payment capabilities for their financial transactions of varying values. The importance of faster payment transaction value as an economic indicator relates to its role in measuring the adoption of instant payment infrastructure for financial flows of economic significance. While transaction counts indicate frequency of use, transaction values reveal the actual monetary amounts moving through faster payment systems reflecting the economic importance of these real-time payments. Higher faster payment values indicate that consumers and businesses trust instant payment systems enough to use them for significant financial transactions including salary payments, bill settlements, merchant payments, and person-to-person transfers of meaningful value. The growth of faster payment values suggests expanding confidence in real-time payment infrastructure and increasing reliance on instant settlement for important financial transactions. For businesses the ability to receive instant payment confirmation and immediate availability of funds supports more efficient cash flow management and working capital optimization. For merchants faster payment values reflect the volume of sales processed through instant payment mechanisms with real-time settlement providing immediate access to funds rather than waiting for card settlement cycles. For individuals faster payment values indicate use of instant transfers for important person-to-person payments including family support, shared expense settlements, and urgent fund transfers. Historical trends in faster payment transaction values in Nepal reflect the adoption journey of real-time payment capabilities from initial deployment to mainstream usage. The initial faster payment capability through ConnectIPS launched in 2014 with transaction values growing steadily as the system gained users and as banks integrated instant transfer functionality into their digital banking platforms. The introduction of QR code payments added a new dimension to faster payment values by enabling real-time payments at physical merchant locations with transaction values growing as QR acceptance expanded across merchant categories. The COVID-19 pandemic marked a significant acceleration in faster payment transaction values as the combination of lockdowns, social distancing, and health concerns drove consumers and businesses to adopt instant digital payment methods at unprecedented rates. The growth trajectory has continued post-pandemic as the habit of using faster payments for immediate settlement has become established and as the infrastructure for real-time payments has continued to expand and improve. The regulatory framework establishing technical standards for faster payments including interoperability requirements and security standards has supported the growth of faster payment values by ensuring reliable and secure processing of real-time transactions. Looking forward the value of faster payment transactions is expected to continue its rapid growth as instant payment infrastructure becomes the default mechanism for an expanding range of payment types and as consumer and business confidence in real-time settlement continues to strengthen. The integration of faster payment capabilities with emerging payment platforms and the development of new use cases including request-to-pay, recurring instant payments, and integrated commerce payments will further expand the range of transactions processed through faster payment systems and increase the total value of instant payment flows in Nepal's economy.
IPS
The total value of transactions settled through the Interbank Payment System in Nepal measured in NPR millions is a key barometer of interbank fund flows and systemic liquidity in the banking sector. This value metric aggregates the total rupees of all high-value interbank transfers processed through the IPS system including interbank lending and borrowing transactions in the money market, government securities settlement, foreign exchange transactions, large corporate payments, and settlement of net positions from other payment systems. IPS transaction value data is compiled by Nepal Clearing House Limited and reported to Nepal Rastra Bank providing a critical input for financial stability monitoring and monetary policy implementation. The value of IPS transactions represents the largest monetary flows in Nepal's payment system with individual transaction values typically in the millions or tens of millions of rupees reflecting the wholesale nature of the system and its role in settling obligations between financial institutions. The importance of IPS transaction value as an indicator of financial system health relates to its role in measuring the monetary scale of interbank financial activity and the efficient functioning of the banking sector's core funding and liquidity mechanisms. The total value of IPS transactions provides a comprehensive measure of the volume of funds moving between financial institutions through the wholesale payment system reflecting the level of interbank market activity, the scale of securities market transactions, and the magnitude of large corporate and institutional payments. Changes in IPS transaction values over time provide insights into the development of Nepal's financial markets with increasing values suggesting growing interbank activity, expanding securities markets, and increasing volumes of high-value payments flowing through the banking system. For monetary policy implementation the value of IPS transactions related to central bank operations including open market operations and standing facility transactions provides a direct measure of the monetary policy operations being conducted through the payment system. For financial stability monitoring unusual patterns in IPS transaction values may signal emerging stress in the banking system including liquidity problems at individual institutions or disruptions in interbank market functioning. Historical trends in IPS transaction values reflect the growth and development of Nepal's financial markets and banking system. Before the establishment of IPS the settlement of high-value interbank transactions was conducted through bilateral arrangements that limited the volume and efficiency of interbank financial flows. The implementation of IPS provided a centralized infrastructure that facilitated the growth of interbank transaction values by reducing settlement risk, improving processing efficiency, and enabling real-time settlement of high-value transfers. Transaction values have grown over time as the banking sector has expanded, as financial markets have developed, as the range of transactions processed through IPS has increased to include new transaction types, and as participants have increased their use of the system for higher-value transfers. The growth in IPS values has been correlated with the overall expansion of Nepal's economy and financial system with periods of rapid economic growth and financial market development associated with increasing interbank transaction activity. The COVID-19 pandemic period saw some volatility in IPS values as economic disruption affected interbank lending activity and financial market transactions but values recovered as markets normalized. The regulatory framework for IPS operates under the Payment and Settlement Act 2072 with the system designated as systemically important payment infrastructure. Participants must maintain settlement accounts at NRB with adequate balances and comply with operational requirements. Looking forward IPS transaction values will be influenced by continued growth of Nepal's financial markets including the development of new financial instruments and services, expansion of IPS participation to additional financial institutions, and potential system enhancements including extended operating hours and new functionality that could support new transaction types and higher transaction values.
Internet Banking
The aggregate value of transactions initiated through internet banking platforms in Nepal measured in NPR millions reflects the monetary volume of digital banking activities conducted by retail and corporate customers through web-based channels. This value metric aggregates the total rupees of all transactions processed through internet banking systems including fund transfers, bill payments, utility payments, mobile recharge, loan repayments, fixed deposit operations, and other activities. Internet banking transaction value data is compiled by banks from their online banking platforms and reported to Nepal Rastra Bank as part of regulatory reporting on digital banking channel usage. The value of internet banking transactions provides a measure of the monetary significance of web-based self-service banking and the extent to which customers are using internet banking for financial transactions of various values ranging from small bill payments to large fund transfers. The importance of internet banking transaction value as an economic indicator relates to its role in measuring the monetary volume of digitally initiated banking transactions and the shift from branch-based to self-service digital channels for higher-value transactions. For the banking sector higher internet banking transaction values indicate successful channel migration of significant monetary flows from expensive branch teller processing to lower-cost digital self-service platforms improving operational efficiency and reducing costs. For customers internet banking transaction values reflect the extent to which they trust the digital channel for financial transactions of meaningful value with higher values indicating confidence in the security and reliability of internet banking for their important financial activities. For businesses internet banking transaction values indicate the scale of cash management activities conducted through web-based platforms including bulk payments, payroll processing, supplier settlements, and account transfers that support business financial operations. For policymakers internet banking transaction values provide a measure of the digitalization of banking transactions and the effectiveness of policies promoting electronic payment adoption for transactions of varying values. Historical trends in internet banking transaction values in Nepal trace the evolution from basic information-only websites to comprehensive transactional platforms. Early internet banking platforms offered only account balance inquiry and transaction history viewing without transaction initiation capabilities meaning transaction values were essentially zero for transactional activities. The introduction of transactional internet banking in the mid-2000s enabled customers to initiate fund transfers and bill payments online with transaction values growing as more customers registered for internet banking and became comfortable with conducting financial transactions through the channel. Transaction values grew progressively as internet connectivity expanded, as banks improved platform functionality and user experience, and as customers became more confident in using internet banking for higher-value transactions. The period from 2015 to 2020 witnessed significant acceleration in internet banking transaction values as broadband penetration increased, as banks invested in platform improvements, and as digital literacy improved. The COVID-19 pandemic served as a powerful catalyst with lockdowns and health concerns driving customers to shift significant transaction values from branch banking to digital channels including internet banking. The post-pandemic period has seen continued growth in internet banking transaction values as the shift toward digital banking has persisted and as banks have continued to enhance their internet banking platforms with improved features and functionality. The regulatory framework through NRB's unified directives mandates security standards for internet banking including encryption, multi-factor authentication, and fraud monitoring that support customer confidence in using internet banking for higher-value transactions. Transaction limits differentiate between transfers to registered beneficiaries with higher limits and unregistered beneficiaries with lower limits influencing the maximum transaction values that can be processed through internet banking. Looking forward internet banking transaction values will be influenced by continued expansion of digital banking adoption, increasing customer confidence in online banking security for higher-value transactions, and the evolution of internet banking platforms with enhanced functionality including integration with other digital services. However internet banking transaction values face increasing competition from mobile banking applications offering similar functionality through more convenient smartphone interfaces with customers increasingly using mobile apps for their banking transactions including higher-value transfers traditionally conducted through internet banking.
Mobile Banking
The total value of transactions processed through mobile banking applications in Nepal measured in NPR millions indicates the monetary significance of smartphone-based financial services in the country's digital economy. This value metric aggregates the total rupees of all transactions conducted through mobile banking applications including fund transfers, bill payments, mobile recharge, QR code payments, ConnectIPS interbank transfers, loan account management, fixed deposit operations, and other services. Mobile banking transaction value data is compiled by banks from their mobile banking platforms and reported to Nepal Rastra Bank as part of regulatory reporting. The value of mobile banking transactions has grown at extraordinary rates making it one of the most important indicators of digital financial engagement in Nepal where smartphone adoption is rapidly increasing and mobile devices serve as the primary digital access point for the majority of the population. The importance of mobile banking transaction value as an economic indicator relates to its role in measuring the monetary scale of mobile-based financial services and the integration of mobile banking into users' financial lives for transactions of meaningful value. While early mobile banking usage was characterized by small-value transactions including balance inquiries and low-value transfers, the growth in mobile banking transaction values indicates that users are increasingly trusting mobile applications for higher-value financial transactions including significant fund transfers, bill settlements, merchant payments, and other important financial activities. This progression from small-value to higher-value mobile banking transactions represents deepening adoption and integration of mobile banking as a primary financial channel rather than a supplementary service for minor transactions. For banks mobile banking transaction values reflect the return on investment in mobile platform development and indicate the channel's growing contribution to overall transaction processing volume. For the broader economy mobile banking transaction values provide evidence of the shift from cash and branch-based transactions to digital mobile channels for financial activities of economic significance supporting policy objectives of promoting digital financial inclusion and reducing cash dependence. Historical trends in mobile banking transaction values in Nepal represent one of the most remarkable growth trajectories in the country's financial sector. Mobile banking services were first introduced in the early 2010s with basic applications offering limited functionality and early transaction values were minimal as the channel was new and users were cautious about conducting financial transactions through mobile devices. The introduction of more sophisticated mobile banking applications with improved security features including biometric authentication and transaction confirmation processes increased user confidence in using mobile banking for higher-value transactions. The expansion of mobile banking functionality to include QR code payments, ConnectIPS interbank transfers, and other services expanded the range of use cases for mobile banking and increased the transaction values processed through the channel. The COVID-19 pandemic from 2020 to 2022 served as the ultimate catalyst with lockdowns and health concerns driving customers to shift from branch banking to mobile banking for a wide range of financial transactions including higher-value transfers and payments. Banks reported that mobile banking transaction values increased dramatically during this period as customers who had previously relied on branch tellers or internet banking for their significant financial transactions turned to mobile banking applications. The post-pandemic period has seen continued growth in mobile banking transaction values as the habits formed during lockdowns have persisted and as banks have continued to enhance mobile banking functionality making it capable of handling an increasingly wide range of transaction types and values. The regulatory framework through NRB's unified directives requires comprehensive security measures for mobile banking including secure data transmission, biometric authentication, and session management that support user confidence in conducting higher-value transactions through mobile channels. Transaction limits differentiate between transfers to registered beneficiaries with higher limits and unregistered beneficiaries with lower limits influencing the maximum transaction values that can be processed through mobile banking. Looking forward mobile banking transaction values are expected to continue growing as smartphone penetration increases, as banks introduce innovative features that support higher-value use cases including investment services and lending applications, and as mobile banking becomes the central digital channel for customers' financial lives with increasing trust in the mobile channel for financial transactions of all values.
Other Retail Payments
The aggregate value of miscellaneous retail payment instruments in Nepal measured in NPR millions including cheques, demand drafts, and other traditional payment methods still circulating in the economy provides an indicator of the residual monetary flows through paper-based payment instruments. This value metric captures the total rupees processed through retail payment instruments not classified in other payment categories including traditional instruments that are gradually being replaced by electronic alternatives as the payment ecosystem modernizes. Other retail payments value data is compiled by banks and financial institutions from their payment processing records and reported to Nepal Rastra Bank providing insight into the monetary significance of traditional payment methods that remain in use despite the growth of digital alternatives. The importance of other retail payments value as an economic indicator relates to its role in measuring the monetary magnitude of traditional payment instrument usage and the pace of transition to digital payment methods. The total value of other retail payments reflects the amount of money still flowing through paper-based and traditional channels that could potentially be transitioned to more efficient electronic alternatives. While the count of traditional payment transactions may be declining, the value of individual transactions tends to be relatively high meaning that the total value of other retail payments may represent a significant portion of overall payment flows even as transaction volumes decline. Understanding the value remaining in traditional payment channels helps policymakers assess the progress of digital payment adoption and identify segments of the economy where additional efforts may be needed to promote electronic alternatives. For banks the value of other retail payments affects operational planning for processing paper-based instruments including staffing, infrastructure, and technology investments needed to support instruments that may be in declining use but still require processing capability. Historical trends in other retail payments values in Nepal reflect the gradual decline of traditional payment instruments as digital alternatives have become more widely available and convenient. The value of cheque-based payments not processed through the ECC system has declined as electronic cheque clearing has become the standard processing method. The value of demand drafts has been significantly reduced by electronic fund transfer mechanisms offering faster, cheaper alternatives. The value of other paper-based instruments has declined as government agencies, businesses, and individuals have adopted electronic payment methods. The rate of decline has been influenced by the pace of digital payment infrastructure development and the persistence of use cases where traditional instruments are required or preferred. The COVID-19 pandemic accelerated the decline of traditional payment instrument values as health concerns drove both consumers and businesses to seek contactless digital alternatives. The regulatory environment including NRB's policies promoting digital payments and the legal framework for electronic transactions has supported the transition from traditional to digital payment instruments. Looking forward the value of other retail payments is expected to continue its gradual decline as digital payment adoption deepens across all segments of the economy though the complete elimination of traditional payment instrument values is unlikely in the foreseeable future given their continuing utility for specific high-value use cases and the preference of certain user segments for paper-based instruments with their familiar processes and legal characteristics.
Point of Sales (POS)
The total value of card-based transactions processed at point-of-sale terminals in Nepal measured in NPR millions measures consumer spending through card payments at physical merchant locations. This value metric aggregates the total rupees of all debit card, credit card, and prepaid card transactions processed through POS terminals at retail stores, restaurants, hotels, supermarkets, pharmacies, and other merchant establishments. POS transaction value data is compiled by acquiring banks that deploy and manage POS terminals and reported to Nepal Rastra Bank as part of payment system statistics. The value of POS transactions provides a measure of the monetary volume of retail spending that is conducted through card-based electronic payments at physical points of sale reflecting the adoption of card payments as an alternative to cash for in-person purchases. The importance of POS transaction value as an economic indicator relates to its role in measuring the displacement of cash in retail transactions and the formalization of merchant sales through electronic payment records. When consumers use cards for POS transactions each transaction creates an electronic record of the sale value documenting the merchant's revenue and supporting tax compliance and economic analysis. The total value of POS transactions provides a measure of the volume of retail spending that has transitioned from cash to card payments reflecting progress toward digital payment objectives and the reduction of cash dependence in the retail economy. For merchants POS transaction values represent sales processed through card payments with the benefit of reduced cash handling costs and risks balanced against merchant discount fees paid to acquiring banks. For the banking sector POS transaction values generate fee income through merchant discount rates and interchange fees. For policymakers POS transaction values provide a measure of retail payment modernization and the adoption of electronic payment methods at the point of sale. Historical trends in POS transaction values in Nepal reflect the gradual development of merchant card acceptance infrastructure and consumer adoption of card payments. Early POS transaction values were limited as POS terminals were concentrated in high-end establishments in major cities and consumer awareness of card payment convenience was developing. The expansion of POS infrastructure from approximately 2010 onward drove increases in POS transaction values as more merchants accepted cards and more consumers used them for purchases. The growth of the tourism sector with international visitors expecting card payment acceptance supported POS transaction value growth in tourist destinations. The introduction of contactless POS technology enabling fast tap-and-go transactions increased consumer convenience and supported higher transaction values by making card payments competitive with cash for small-value purchases. The COVID-19 pandemic had a mixed impact with initial lockdowns reducing in-person retail activity while the shift toward contactless payments including tap-and-go card transactions accelerated. The regulatory framework regulates merchant discount rates and establishes technical standards for POS terminal security. Looking forward POS transaction values face competition from QR-based payments and mobile wallet services offering lower acceptance costs and convenient payment experiences. However continued expansion of POS infrastructure including mobile POS solutions for small merchants and contactless technology adoption suggest continued relevance for card payments at the point of sale.
Prepaid Cards
The total value of prepaid card transactions in Nepal measured in NPR millions tracks the monetary flows through prepaid instruments used for travel, gifting, and unbanked payments. This value metric aggregates the total rupees of all prepaid card transactions including merchant purchases, ATM cash withdrawals, online transactions, and other uses of prepaid instruments for payment purposes. Prepaid card transaction value data is compiled by prepaid card issuers including banks and payment service providers and reported to Nepal Rastra Bank as part of regulatory reporting on payment instrument usage. The value of prepaid card transactions provides a measure of the monetary significance of these alternative payment instruments in Nepal's payment ecosystem and the extent to which prepaid cards are being used for financial transactions of meaningful value. The importance of prepaid card transaction value as an economic indicator relates to its role in measuring the adoption of payment instruments serving specific market segments where prepaid cards offer particular advantages. For unbanked populations prepaid card transaction values indicate the monetary scale of financial activity being conducted through instruments that do not require a traditional bank account providing insight into the effectiveness of prepaid programs for financial inclusion. For employers using prepaid payroll cards transaction values reflect the amount of wages being distributed through electronic instruments reducing cash handling costs. For government agencies distributing benefits through prepaid cards transaction values indicate the effectiveness of electronic benefit distribution programs. For the travel sector prepaid travel card transaction values reflect foreign currency spending by Nepali travelers abroad supporting outbound tourism expenditure measurement. For the financial sector prepaid card transaction values generate fee income through transaction fees and ATM withdrawal fees contributing to the revenue of prepaid card issuers. Historical trends in prepaid card transaction values in Nepal reflect the relatively small but growing segment of the payment instrument market. Early transaction values were limited as prepaid cards were primarily used for specific purposes such as corporate gifting with cardholders often using the full value in a single transaction. The growth of reloadable prepaid cards encouraging ongoing usage has supported increasing transaction values. The development of specific prepaid programs for travel, payroll, and benefit distribution has expanded the value flowing through prepaid instruments. The regulatory framework establishes maximum load limits and know-your-customer requirements calibrated to card type influencing the maximum values that can be loaded onto prepaid cards. Looking forward prepaid card transaction values will be influenced by continued development of prepaid programs for specific market segments and competition from alternative instruments including debit cards and digital wallets that offer similar functionality through more convenient channels.
QR-Based Payments
The total value of QR code payment transactions in Nepal measured in NPR millions reflects the growing preference for scan-and-pay convenience among Nepali consumers and merchants. This value metric aggregates the total rupees of all QR payment transactions processed through mobile banking applications and digital wallet services at merchant locations across the country. QR payment transaction value data is compiled by banks and payment service providers that process QR transactions and reported to Nepal Rastra Bank as part of payment system statistics. The value of QR payments provides a direct measure of the monetary volume of retail spending being conducted through scan-and-pay convenience reflecting the adoption of QR as a mainstream payment method for transactions of varying values from small purchases at local shops to larger payments at retail establishments and service providers. The importance of QR payment transaction value as an economic indicator relates to its role in measuring the monetary significance of the most rapidly growing digital payment channel in Nepal's retail economy. QR payments have become the most accessible digital payment method for merchants of all sizes with the low cost of QR acceptance enabling even the smallest vendors to offer digital payment options to their customers. The total value of QR payments provides insight into the amount of consumer spending that has shifted from cash to digital payments through QR channels reflecting the success of financial inclusion initiatives in bringing digital payment capabilities to previously cash-only merchant segments. For micro and small merchants who may not have access to traditional POS terminal infrastructure, QR payment values represent digital sales revenue that was previously conducted in cash with benefits including reduced cash handling risks and electronic transaction records supporting business management. For the broader economy QR payment values indicate progress toward the government's objective of reducing cash dependence and increasing the formalization of retail transactions. Historical trends in QR payment values in Nepal represent one of the most remarkable growth stories in the country's payment ecosystem. QR payments were introduced by mobile wallet providers beginning around 2015 with early values limited as the concept was new and merchant acceptance was developing. The real acceleration came with the introduction of the Nepal QR standard establishing a common QR code format scannable by any participating banking or wallet application enabling interoperability between different payment systems. Following this standardization QR payment values began growing at exponential rates as banks integrated QR functionality into mobile banking applications, as payment service providers promoted QR acceptance, and as consumers discovered scan-and-pay convenience. The COVID-19 pandemic dramatically accelerated QR payment value growth as consumers and merchants sought contactless payment methods with QR payments promoted as a safer alternative to cash. The post-pandemic period has seen continued strong growth in QR payment values as the convenience of scan-and-pay has made QR a preferred payment method for an expanding range of retail transactions. Looking forward QR payment values are expected to continue growing as QR acceptance expands to additional merchant categories and transaction types with the potential integration of QR payments with loyalty programs, invoice payments, and other value-added services further driving transaction values.
RTGS
The total value of transactions settled through the Real Time Gross Settlement system in Nepal measured in NPR millions is the largest settlement category covering securities, large corporate payments, and interbank obligations. This value metric aggregates the total rupees of all high-value interbank transfers processed through the RTGS system including interbank money market transactions, government securities settlement, foreign exchange settlement, large corporate payments, and net settlement of obligations from other payment systems. RTGS transaction value data is compiled by Nepal Rastra Bank as the system operator and provides the most comprehensive indicator of high-value fund flows through Nepal's financial system. The value of RTGS transactions represents the overwhelming majority of total value processed through the country's payment infrastructure with individual transactions often valued in the hundreds of millions or billions of rupees. The importance of RTGS transaction value as an economic indicator relates to its role in measuring the monetary magnitude of wholesale financial market activity and the scale of high-value fund transfers in Nepal's economy. The total value of RTGS transactions provides the most comprehensive measure of the volume of funds moving between financial institutions for settlement of financial market transactions, corporate payments, and interbank obligations. Changes in RTGS transaction values over time reflect the development of Nepal's financial markets, the growth of the economy, and the evolution of payment patterns for high-value transactions. RTGS values are closely monitored by NRB for financial stability purposes with unusually high or low values potentially signaling changes in financial market conditions or emerging stress in the banking system. For monetary policy implementation RTGS transaction values provide information about the scale of central bank operations and the functioning of the interbank money market. For financial market participants RTGS transaction values provide insight into the level of activity in Nepal's securities market and the volume of funds flowing through the wholesale payment system. Historical trends in RTGS transaction values in Nepal reflect the growth of financial markets and the expansion of high-value payment flows through the centralized settlement system. The RTGS system was established in the early 2010s with initial values reflecting interbank transactions and government securities settlement. Transaction values have grown significantly over time as the economy has expanded, as financial markets have developed, as more banks have become direct participants, and as the range of transactions processed through RTGS has increased. The growth in RTGS values has been correlated with the overall expansion of Nepal's economy and financial system with periods of rapid growth associated with increasing financial market activity and higher corporate payment volumes. Looking forward RTGS transaction values will continue to grow with the expansion of Nepal's economy and financial markets with potential system enhancements including extended operating hours and new functionality supporting higher transaction values and new transaction types.
Wallet
The total transaction value processed through mobile wallet applications in Nepal measured in NPR millions captures the monetary scale of digital wallet usage for peer-to-peer transfers, merchant payments, and bill settlements. This value metric aggregates the total rupees of all transactions processed through digital wallet platforms operated by licensed payment service providers including eSewa, Khalti, IME Pay, and other NRB-licensed wallet operators. Wallet transaction value data is compiled by payment service providers from their processing records and reported to Nepal Rastra Bank as part of regulatory reporting. The value of wallet transactions provides a comprehensive measure of the monetary flows through digital wallet channels reflecting the growing importance of wallet services as a platform for financial transactions of varying values in Nepal's digital economy. The importance of wallet transaction value as an economic indicator relates to its role in measuring the monetary significance of digital wallet services in Nepal's payment ecosystem and the extent to which users are trusting wallet platforms for financial transactions of meaningful value. The growth of wallet transaction values from primarily small-value person-to-person transfers and bill payments to include higher-value merchant payments, remittance receipts, and other significant financial transactions demonstrates the deepening adoption of wallet services as a mainstream financial channel. For wallet service providers transaction values are the primary driver of revenue through transaction fees and merchant discount rates making value growth essential for the commercial sustainability of wallet platforms. For merchants wallet transaction values represent the volume of sales processed through digital wallet payments with benefits including immediate settlement and reduced cash handling costs. For policymakers wallet transaction values provide a measure of the adoption of non-bank digital payment services and the contribution of the wallet sector to financial inclusion and digital payment objectives. Historical trends in wallet transaction values in Nepal represent one of the most remarkable growth stories in the country's financial sector. The digital wallet concept was introduced by eSewa in 2010 with early transaction values minimal as user adoption was limited and the range of available services was narrow. The entry of Khalti and IME Pay brought competition and innovation driving improvements in user experience and expansion of service offerings that increased transaction values. The introduction of QR code payments enabling merchant payments dramatically expanded the use cases for wallet transactions and increased transaction values as users began using wallets for retail purchases. The COVID-19 pandemic served as the ultimate catalyst driving massive increases in wallet transaction values as consumers turned to digital wallets for their payment needs during lockdowns. The post-pandemic period has seen continued growth with wallet providers expanding service offerings including savings products, investment services, and lending capabilities that deepen user engagement and drive additional transaction values. Looking forward wallet transaction values are expected to continue growing as smartphone penetration increases, as wallet services expand to new use cases, as interoperability with bank accounts improves, and as wallet platforms evolve into comprehensive digital financial hubs offering an expanding range of services beyond payments.