Elaborate the current status of banking system in Nepal.

Current status of B&FIs

             Nepal Rastra Bank has been playing the role of central bank of Nepal under Nepal Rastra Bank Act, 2058 since its establishment in B.S. 2013.

             BAFIA has categorized B&FIs into 4 classes which are 26 ‘A’ class commercial bank, 17 ‘B’ class development bank, 17 ‘C’ class finance company, and 65 ‘D’ class microfinance company.

             BAFIA has also introduced the concept of Infrastructure development bank limited.

             B&FIs are providing their services in 750 local levels out of 753 local levels all over the country.

             B&FIs is holding 3 Crore 25 lakh deposits account and 1 Crore 55 lakh loan accounts.

             Total deposit and loan amount is Rs. 3934780 (in million) and Rs. 3256986 (In million) respectively.

             Interest rate on deposit and loan is 5.77% and 10.47% respectively.

             Paid-up capital and capital fund of B&FIs is 330806 (in million) and 540106 (in million) respectively.

             Total number of branchless banking center is 1574.

             To number of mobile banking and internet banking is 1 Crore 10 lakh and 10 lakh 32 thousand respectively.

             Total number of debit and credit card is 73 lakh and 1.6 lakh respectively.

Bank and financial institutions were established in order to boost country’s economy by enhancing financial literacy of the general people. If the government support, NRB regulation and public concerns rise. B&FIs may be able to come with more significant financial influence.