International Finance Corporation (IFC) — a member of the World Bank Group — is supporting the government in developing an efficient national payment system to regulate all electronic payment mechanisms in the country, helping integrate small businesses and consumers in the economy.
"A safe, reliable and efficient national payment system will expand access and support economic growth, boosting the growth of small and medium enterprises," said joint secretary and chief of Foreign Aid Coordination Division at the finance ministry Madhu Kumar Marasini.
Developed in collaboration with the World Bank, the project includes building efficient payment mechanisms like mobile money and evolving a comprehensive legal and regulatory framework for the payment system.
The SouthAsia Enterprise Development Facility managed by IFC in partnership with the UK government and the Norwegian Agency for Development Cooperation, is supporting the initiative.
Strengthening the legal and regulatory framework will support introduction and adoption of innovative payment products in both urban and rural markets. The initiative will result in greater ease and transparency in undertaking transactions by promoting electronic payment services to the under-served.
The central bank will be implementing the roll-out. "Reforms in the payment system will help attract private investment and bring efficient services to those excluded from the formal banking system," said IFC senior operations officer in Nepal Fred Zake.
IFC, in collaboration with the World Bank, pursues an integrated approach to develop retail payment systems, utilising technology to expand the reach of financial services.The World Bank works with public authorities across the world to support comprehensive payment reforms and collaborates with standard-setting bodies in the development and application of standards in the area of payment systems.