Feb 01, Kathmandu - Nepal has witnessed notable progress in financial access, usage, and quality, according to the Financial Inclusion Index released by Nepal Rastra Bank on Sunday. The overall index for the fiscal year 2024-25 has increased from 0.47 to 0.53, indicating substantial development in the country's financial landscape.

A report published by the Bank's Department of Financial Inclusion and Consumer Protection highlights significant strides made in expanding financial services, increasing digital medium utilization, and improving service quality. "Due to the expansion of financial access, adoption of digital channels, and enhancements in service quality, there has been steady and widespread progress in financial inclusion," the bank stated.

The index, calculated similarly to the Human Development Index and measured on a scale from 0 to 1, where higher scores denote greater financial inclusion, is based on 55 indicators across three dimensions: access, usage, and quality.

The access dimension scored 0.53, reflecting the expansion of financial institutions, service centers, and digital financial services across the country. Usage scored 0.54, indicating increased involvement of individuals and households in banking, digital payments, insurance, and other financial services. The quality index reached 0.50, driven by improved financial literacy, strengthened consumer protection mechanisms, transparency, and enhanced customer experience.

The Nepal Rastra Bank attributes these positive developments to policy initiatives, digital financial innovations, and regulatory reforms. Looking ahead, the bank emphasizes the importance of strengthening digital infrastructure, promoting financial literacy, and focusing on consumer-centric financial services to sustain this growth.