Banking in Nepal

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Banking in Nepal began with the establishment of Nepal Bank Limited in 1937, marking the country's first formal financial institution. The sector gained momentum with the founding of the Nepal Rastra Bank (NRB) in 1956, which became the central regulatory authority. Over the decades, Nepal transitioned from a state-dominated banking model to a liberalized, competitive financial ecosystem.[1][2][3][4][5]

Regulatory Framework

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The banking system is governed by the Nepal Rastra Bank Act, Bank and Financial Institutions Act (BAFIA), and various NRB directives.[6] NRB classifies financial institutions into four categories:

Class Type Description
A Commercial Banks Full-service banks with national reach
B Development Banks Focused on regional development financin
C Finance Companies Provide hire purchase, leasing, etc.
D Microfinance Institution Target low-income and rural populations

Current Status

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As of Mid-July 2025

According to NRB reports:[7][8]

Banks/BFIs Class No. of BFIs No. of Branches
Commercial Banks (A) 20 5,099
Development Banks (B) 17 1,132
Finance (C) 17 291
Microfinance (D) 54 6,522
Infrastructure Development Bank 1 -
Total 109 13,044

Deposit Accounts: 5.91 crore (exceeding Nepal's population of ~3 crore)

See also

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References

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  1. ^ "History of Banking Industry in Nepal". Retrieved 1 September 2025.
  2. ^ "From Metallic Coins to Online Payments: A Brief History of Banking in Nepal". Retrieved 1 September 2025.
  3. ^ "Banking System Development in Nepal" (PDF). Retrieved 1 September 2025.
  4. ^ "Banking in Nepal: A History of Banking System in Nepal". Retrieved 1 September 2025.
  5. ^ "History of Modern Banking in Nepal". Retrieved 1 September 2025.
  6. ^ "Nepal - Banking Systems". Retrieved 1 September 2025.
  7. ^ "Current Status of Banking in Nepal: Mid 2025". Retrieved 1 September 2025.
  8. ^ "Nepalese Banking & Financial System: Development & Structure". Retrieved 1 September 2025.