Workers in foreign countries send money to Nepal easily through the digital payment system. Digital technology is not a new term, even though it has rewired the way we operate. Many companies have already recognized it as a turning point, allowing them to change their game completely. With the advent and adoption of digital finance technology, digital technology is now beginning to have a similar effect on the financial sector.
What Is The Development In Digital Payment System In Nepal
People in Nepal are becoming more accustomed to digital payment, i.e. money transfer to Nepal and other countries through the internet as the country’s internet penetration grows. According to the Nepal Telecom Authority’s (NTA) 2017 survey, Nepal has a 63 percent internet penetration rate and a 125 percent smartphone penetration rate. According to the results, the number of cell phone users in the country is 34.64 percent higher than the country’s total population.
According to 2019 numbers, Nepal’s population is projected to be 28.6 million people. Owing to the usage of multiple sim cards by a person, the number of cell phone users exceeds the total population. According to NTA spokesperson Min Prasad Aryal, smartphone and internet penetration is the latest trend around the world, and it will continue to develop as technology advances. Online money transfers to Nepal through mobile applications are also increasing with the same frequency.
According to the most recent estimates Nepal Telecommunications Authority’s (NTA) Management Information System (MIS) survey, there are even more than 38.21 million cellular phone users in Nepal as of mid-January 2021. The country’s smartphone penetration has surpassed 50%. The internet and smartphones are familiar to the majority of the country’s population.
What Is The Impact of Policy Of Government In the Development of Digital Payment System In Nepal?
In Nepal, strict regulations have been a significant impediment to send money to Nepal online. The Nepal Rastra Bank has imposed transaction limits, which has caused many users to be inconvenienced. It’s also one of the reasons why people prefer cash over electronic transactions. The NRB has set a limit of Rs. 5,000 for one-time transactions. The regular and monthly payment limits, on the other hand, are set at Rs. 10,000 and Rs. 50,000, respectively. Although the government has announced that it would encourage digital transactions in the past, such policies do not seem practical.