Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) is to facilitate the merger and merger of branches of banks and financial institutions spread like mushrooms in the metropolis.

This policy of Nepal Rastra Bank has not only supported digital transactions but has also reduced the unnecessary expenses of the bank and the possibility of shareholders getting good dividends has increased.

As the banks mushroomed in the metropolis, as the branches of the banks were expanded, the boards of the banks were seen like housewives in the big cities. When digital transactions started increasing, it became difficult to run the ‘business’ of some branches of the bank. In the meantime, the central bank has left the bank itself open for unnecessary branch merger and merger.

Currently, there are 6 metropolitan cities in the country. There are 1,763 branches of banks and financial institutions in six metropolitan cities alone. There are 6,526 in the country.

According to the Nepal Rastra Bank, there are 822 banks and financial institutions in the Kathmandu metropolitan city alone. Similarly, Pokhara Metropolitan City has 337 branches, Biratnagar Metropolitan City 110, Birgunj 96, Lalitpur 222 and Bharatpur Metropolitan City has 176 branches.

The NRB, while reviewing the first quarter of the Monetary Policy for the current fiscal year, has made a provision that the banks and financial institutions themselves will be able to adjust÷merge their branches in the metropolis in the context of the increasing e-payment transactions and the number of branches of banks and financial institutions in the metropolis. However, it is not clear whether all are in the metropolis or only in Kathmandu metropolis. Kathmandu alone has half the share of branches in 6 metropolitan cities.

There are more business activities and industries in these areas. As a result, there are many branches of banks and financial institutions. With the rise in digital transactions in recent times, the central bank has reached to increase the number of banks and financial branches.

According to the Nepal Rastra Bank, the number of mobile banking users has reached 2,84,18,000 as of mid-October 2082. The number of internet banking users is 23,265.

The number of people visiting the branch has been decreasing in recent times. Digital transactions are on the rise. At the same time, the operating expenses are in proportion to the large number of branches of the bank. This has an impact on profits. The Rastra Bank has adopted this policy to increase the profit of the bank and increase investment in technology. This policy is not a one-off policy.

The central bank, while bringing the monetary policy for the current fiscal year, had said that the existing branch expansion policy of banks and financial institutions would be reviewed in the context of strengthening the electronic payment system.

There is no mention of how the Rastra Bank will coordinate and facilitate the integration of branches. The unified directive to be issued now will make it more clear. NRB Governor Prof. Dr. Bishwanath Poudel is confident that this policy of the NRB will increase the profit of the bank, reduce operating expenses, get more dividend to the shareholders and increase the investment in technology.

Addressing the 29th anniversary of Society of Economic Journalists Nepal (SEJON) here today, Finance Minister Khatiwada said the banks and shareholders would benefit from the new policy adopted by the NRB.  “Banks have to work on their profitability as well,” he said.

Stating that there are 60 banks in New Road, Prof Dr Poudel said that in the beginning, the banks were left open to open and close their branches within the metropolis. “I believe that closing a bank branch will have a positive impact on your profitability. So, run the bank well,” he said. The bank should be disciplined. Invest in technology. ’

Digital banking has been a major priority in Nepal for the past few years. Since the time of Maha Prasad Adhikari, the outgoing governor of Nepal Rastra Bank, Delittle was given more priority. It has now reached the grocery store through banks and financial numbers.

Nowadays, digital transactions are more important than cash transactions. The branches of the banks, which were once mushroomed in the valley, are now neither open nor closed. Now, bankers say, it’s easier. Earlier, there is not much crowd in the bank branches which used to be crowded throughout the day. A banker said that even though all transactions are digital, service recipients have started saving time coming to the bank.