January 6: Banks and financial institutions are reluctant to use the Land Reform Information Management System (LRIMS) despite recommendation to the BFIs by the Department of Land Management and Archive to integrate the system from the beginning of the current fiscal year. 

BFIs are advocating for digital banking but lack confidence in the government-owned system. The officials of the department say BFIs are worried the banking system might be hacked if they connect to the LRIMS system. Balaram Kafle, computer officer at the Information Technology Branch of the department said no security threat has been detected in the system which was launched in 2015. 

"The department's system is an SSL (Secure Socket Layer) certified website. Even in that case if BFIs have any doubts they can launch the system in a separate network," said Kafle. But BFIs are not using the system and queuing themselves up physically at the land management offices.

"The land management service center has not interfered in any process of BFIs," he said, adding, “We have just asked BFIs to scan the paper meant for land release from their own computer. But they visit the land revenue office instead for this small task."

However, Vinay Kumar Regmi, deputy CEO of Nabil Bank, said that the banks could not start the service as the department has not updated the system. "And the department has not even provided training to BFIs to run the system," he added. On the other hand, the department argues that the training has been provided to the BFIs and the system is running well. 

Technology is rarely used in cooperatives compared to BFIs. Out of thousands of cooperatives, very few cooperatives are providing services like ATM, online banking and SMS banking.

However, cooperatives are ahead of banks and financial institutions in the use of technology in land management services. While 40 banks and financial institutions have received permits to use LRIMS, the number of cooperatives is only half, i.e. 26. However, the department estimates that the number of cooperatives using this system has almost doubled compared to the number of BFIs.

The department has issued such permits to BFIs to make the Land Revenue Office technology friendly and reduce the physical presence of people at the Land Revenue Office.

The department had projected that pressure of land management work would reduce by half if BFIs use the system. But the reluctance of BFIs to start the system has not helped to reduce their physical presence at the land revenue office.

EPF contributors lack confidence in LRIMS

Mahendra Raj Shakya, head of the credit department at the Employee Provident Fund, said that though they are willing to go online the contributors lack confidence in the system.

"Contributors believe the work is done in one day if we visit the land revenue office. However there are uncertainties if they use the online service," said Shakya. He said that people take time to get used to the system. “It will take another year for its full implementation.”