Achievements of the Corona Epidemic: Four-fold increase in e-commerce in one year
Achievements of the Corona Epidemic: Four-fold increase in e-commerce in one year
Until a few years ago, checks had to be deducted or cash had to be paid for normal transactions. Banks and financial institutions, which have been gradually adopting the development in the field of information and technology, have gradually promoted electronic transactions.
Electronic transactions, which used to be an alternative system before the Corona epidemic, have now become a service to the general public.
Nepal Rastra Bank has systematically promoted electronic payments and transactions. Systems like Mobile Wallet, Connect IPS, RGTS have been brought into operation.
This has also added ease and reliability to the common man in business. With the increase in electronic transactions, the responsibility of the regulatory body has been added to the growing interest in security.
As per the details of the fiscal year 2077/78 made public by Nepal Rastra Bank, it can be seen that both the number and quantity of electronic transactions have increased.
According to the central bank, the real time gross settlement (RGAS) connected for IPS and mobile banking has significantly increased compared to mid-June 2077 BS. As per the details, the electronic transactions have increased four times in June, 2078 BS as compared to June, 2077 BS.
According to the bank, the turnover was Rs.
It has a large share of RGTS, Connect IPS and mobile banking. Looking at the details, the volume of transactions has increased by 412 percent in a year.
According to the central bank, the number of transactions from Connect IPS has increased from six lakh 96 thousand 538 times in May 2077 BS to two lakh 16 thousand 648 times in June 2078 BS.
Of the total 37,297 payments made through RGTS till mid-June 2077 BS, a total of 34,874 RGTS transactions have been made by June 2078 BS.
Similarly, transactions based on Quick Response (QR) conducted by Nepal Rastra Bank as a campaign have also increased.
From one lakh 95 thousand 16 transactions in mid-July 2077 BS, it has increased to five lakh two thousand 666 by mid-June 2078 BS.
It has increased from 58.17 million transactions through mobile banking in June 2077 BS to more than 11 million in mid-June 2078 BS.
The situation with wallet transactions is similarly encouraging. Of the 1179,557 transactions that took place in June 2077 BS, it has come down to 9.75 million in mid-June 2078 BS.
Due to Corona, nationwide woodworking was implemented from April 2067 to August 2077. Similarly, a nationwide ban was imposed from 16 April 2078 BS to the second week of 2077 BS.
Due to Corona, the general public has given priority to electronic transactions as they are not able to do business by physically attending banks and financial institutions.
People’s attraction seems to have increased as e-commerce has become easier and cheaper. According to the NRB, the transaction through Connect IPS has been more than Rs 100 billion.
In mid-June 2077 BS, Rs. 51.30 billion was transacted through Connect IPS, which increased to Rs. 158.25 billion by mid-June 2078 BS.
Of the 1.46 million transactions in the previous May, it has increased to 2.16 million 648 times in 2078 BS.
According to Nileshman Pradhan, chief executive officer of Nepal Clearing House, the increase in electronic transactions is also due to the growing awareness of customers about technology and corona.
He said that the cashless transactions have increased due to the meaningful efforts of the government, Nepal Rastra Bank and other concerned governmental and non-governmental bodies.
The volume of transactions through Connect IPS has increased by 660 percent. Similarly, transactions through IP have also increased by 85 percent.
The Chief Executive Officer (CEO) says that cash transactions can be reduced to a low point if electronic transactions are made easy and acceptable in all sectors.
Stating that the general interest in easy business has also increased due to the policy-friendly arrangements and the transactions, he stressed on the need of all stakeholders to make additional arrangements for acceptable transactions.
According to the bank, the total amount of Rs. It also seems that Nepali citizens are becoming accustomed to the use of technology.
In addition to the Kalimati vegetable and fruit market, the central bank has launched a campaign to promote the use of QR codes in major vegetable markets, department stores and other public places in the country.
Manoj Gyawali, Deputy General Manager of Nabil Bank, says that the increase in electronic transactions is also due to the easy policy arrangements made by Nepal Rastra Bank and the awareness among the citizens.
Noting that his bank has also promoted the use of QR codes as a campaign, he said that there has been a significant increase in electronic transactions compared to before and after the Coronation Period.
The increasing use of QR codes has had a positive impact on society as well. The use of QR code has been increasing in retail shops, vegetable markets and general business.
Giving information that banks and financial institutions have already made arrangements to provide loans through phone or digital system, Deputy General Manager Gyawali expressed confidence that more than 4.5 million customers would be connected through electronic transactions in a short time.
The central bank plans to promote cashless transactions. Central Bank Governor Maha Prasad Adhikari termed the campaign as a grand campaign. Private sector banks and financial institutions have also assimilated it.
The monetary policy of the current fiscal year also includes a plan to make the electronic payment system more systematic and effective. The central bank, which is involved in the promotion of cashless transactions, is going to set up a national payment switch by interconnecting the equipment.
The monetary policy aims to celebrate the Fiscal Year 2079/80 BS as the year of electronic payment transaction promotion. For this, it is aimed to focus on the development of necessary infrastructure and awareness raising.
According to Governor Adhikari, Nepal’s own payment card will be used to clear and document the payment transactions within Nepal by maintaining interconnection between electronic payment devices.
Special refinancing will be provided to payment service providers and payment system operators and communication service providers investing in the development and promotion of the overall ecosystem of electronic payment systems.
In order to promote such payment transactions, the limits of transactions through various means will be reviewed and policy arrangements will be made to maintain the transaction fees at an appropriate level.
Necessary arrangements will be made to facilitate the revenue received by the government and all types of payments through banking and electronic payments.
Similarly, the policy includes encouraging the delivery of electronic payment services to the customers of microfinance financial institutions and cooperatives by expanding the scope of business of payment service providers and payment system operators. The aim is to formulate and implement digital credit guidelines in banks and financial institutions to facilitate the process from loan application to approval for electronic arrangements.
Regarding the use and feasibility study of e-currency in the world, the central bank has set a policy to study the feasibility of e-currency in Nepal as well.
With the increasing use of cryptocurrency and bitcoin around the world, the central bank has taken a step in the same direction through its policies.
Nepal Electricity Authority (NEA) has already introduced electronic system in tariff payment a few years ago. About 50 percent of the tariffs of most of the distribution centers in Kathmandu are through electronic system. From drinking water bill to air ticket purchase, it is done electronically.
The amount of electronic payment has also increased from the government’s revenue to the purchase of other daily necessities. Even without cash, life can be run smoothly.
A comfortable environment has been created where you can order food and snacks from your mobile at home, office or wherever you need.
Citizens Investment Fund, Employees Provident Fund, Passport and Traffic Police fines can be paid through Connect IPS. Similarly, money can be kept in vehicle purchase, stock market transactions, insurance and internet bills, mobile telephone bills and even in the wallet.
Chief Executive Officer of e-Services, Subash Sapkota, says that it is very positive that Nepal Rastra Bank has given high priority to this issue in its monetary policy this year.
He emphasized the need to focus on climate change, and said that it was even more important now with the crisis over monetary policy.
He said that this is also a matter for the user to be aware of and stressed that cash transactions should be done through alternative means. Stating that this year has been more exciting than the previous one, he said that cashless transactions were a hobby in the past but now it has become a necessity.
“The hassle of sitting in line to pay electricity bills, various bills is being reduced, time is being saved and people are becoming more technology friendly day by day, which is a very positive thing,” he said.
He said that the vehicle renewal should be implemented in the places where revenue is collected including driver’s license certificate and freight and the citizens should be made aware that digital banking is not complicated but easy.
Chief Executive Officer of e-Services, Subash Sapkota, said that it is very positive that Nepal Rastra Bank has given high priority to this issue in its monetary policy this year.
He emphasized the need to focus on climate change, and said that it was even more important now with the current fiscal year.
He said that this is also a matter for the user to be aware of and stressed that cash transactions should be done through alternative means. Stating that this year has been more encouraging than the previous year, he said that cashless transactions were a hobby in the past but now it has become a necessity.
“The hassle of sitting in line to pay various bills like electricity, telephone, is being reduced, time is being saved and people are becoming more and more technology friendly day by day, which is a very positive thing,” he said.
He said that the vehicle renewal should be implemented in the places where revenue is collected including driver’s license, freight and should be explained to the citizens that digital banking is not complicated but easy.