Non-cash retail payments from NCHL crosses 3 time GDP
Banking Khabar/ Non-cash retail payment transactions processed through NCHL’s payment systems during the FY2077/78 has crossed over 304% of GDP of Nepal. NCHL has been operating major national payments systems including NCHL-ECC, NCHL-IPS and connect IPS along with other channel platforms for its member banks/ financial institutions, payment service providers and various other institutions including Government of Nepal.
NCHL processed total of 44.77 Million transactions during the fiscal year with growth of over117%. The total settlement value of transactions remained at NRs 13.04 Trillion, USD209 Million, EUR 249 Million, and GBP 272 Million in the respective currencies from the various retail payment systems. While cheque transactions in NCHL-ECC has grown by 21%, NCHL-IPS by 94%, whereas connect IPS has seen the growth of over 566% in terms of volume of transactions, as compared to the last fiscal year. Transactions in paper based instruments seem to have started to stagnate, whereas the digital instruments has picked up the much needed growth momentum.
Government of Nepal’s policies and NRB’s regulatory direction towards less-cash economy, supported by the Covid situation has largely increased adoption of digital payments and has helped create a needed hype and awareness for the general public and the institutions. This is expected to further grow in the coming fiscal year, which is expected to be supported by National Payment Switch (NP), which is under implementation by NCHL. NCHL is promoted by Nepal Rastra Bank and the banks & financial institutions which has been implementing and operating major national payment, clearing & settlement systems and facilitating for development of digital payment ecosystem. There are over 59 banks & financial institutions, 23 PSPs, 12 remittance companies, 7 insurance companies, 12 GoN entities and 7 other institutions as its members.