August 23: The general public has shown keen interest in banking transactions through mobile devices.

The number of people using mobile banking services has increased along with the transaction volume due to the increase in access to smartphones and the Internet, the expansion of services of banks and financial institutions as well as various wallet companies, and the government’s policies to encourage electronic payments.

According to the data of Nepal Rastra Bank, the volume of transaction through mobile banking in the month of Asar (mid-June to mid-July) stood at Rs 233.44 billion, followed by Rs 30.14 billion through QR code and Rs 20.32 billion through digital wallet.

While mobile banking transactions increased by 42.99 percent in the review month compared to a year ago, payments through QR code increased by 107.54 percent and digital wallets by 14.49 percent, the central bank said.

Around 3 million mobile banking users have been added within a period of one year. In mid-June 2022, there were 18.3 million mobile banking users, which increased to 21.3 million in mid-June 2023. Similarly, the central bank’s data show that the number of digital wallet users increased from 13.6 million to 18.9 million.

Currently, in addition to banks and financial institutions (BFIs), various payment system operators and service providers are also operating mobile payment services. The central bank has been giving permission to private companies to operate digital wallets to encourage the use of electronic payments. Currently, 27 companies are operating digital wallet services.

Similarly, Nepal Rastra Bank has increased the transaction limit for electronic payments after the onset of Covid-19 pandemic.

Currently, the upper limit for transactions through mobile banking has been fixed at Rs 300,000 per day.

Similarly, the central bank has allowed transactions up to Rs 200,000 per day from bank account to digital wallets and vice versa  and  up to Rs 1 million per month. Similarly, the NRB has fixed the limit of transactions worth Rs 50,000 per day and Rs 500,000 per month from one wallet to another.

Arrangements have been made to send remittances from abroad directly to digital wallets.

Currently, banks have started providing all kinds of banking services and facilities through mobile banking. Mobile banking and wallet can be used for paying money to another bank account, shopping in the market, paying bills such as mobile, telephone, internet, water etc.

To encourage QR codes, the central bank has made arrangement for banks and financial institutions to provide QR codes even for unregistered businessmen.

There is a provision that a QR code can be provided in order to transfer funds to savings accounts in banks and financial institutions in the name of sole proprietors who have a permanent account number.

Similarly, there is a provision to provide a QR code in the name of a merchant on the basis of an official identity card and even other businessmen who do not have a permanent account number but do business transactions of up to Rs 5,000 per day.