Kathmandu. KATHMANDU: Kumari Bank has signed a memorandum of understanding (MoU) with the German international cooperation giz Nepal to improve electronic mobility in Nepal. The bank has signed a memorandum of understanding under the Sustainable Electric Transport for Nepal Project.

The collaboration will provide affordable financial access to public transport operators. It is expected to support targeted financial mechanism and digital innovation to accelerate the approval and operation of electric public transport especially electric micro and minibus vehicles.

According to the agreement, the public transport business will be able to use electric micro and minibuses. For this, Kumari Bank will arrange a special financial scheme (loan package) and initial down payment grant (subsidy). The bank hopes that this will reduce the cost of buying vehicles and make it financially easier.

The project is a joint initiative being implemented by GIZ Nepal and Global Green Growth Institute in collaboration with the Ministry of Physical Infrastructure and Transport and other relevant partners. The project is being implemented with the financial support of the Mitigation Action Facility.

The project aims to operate around 3,500 electric minibuses. This is expected to contribute to making Nepal’s public transportation system cleaner, greener and more sustainable.

Keeping in mind the economic constraints, the initiative aims to convert conventional fuel-based vehicles to electric vehicles. Digital features such as mobile application, GPS devices, LED route display and open loop e-ticketing system are also being used to make public transport easier, safer and smarter.

The bank has been rendering state-of-the-art banking services through its wide domestic network of 302 branches, 50 extension counters, 48 branchless banking units and 317 ATMs across the country.