NRB to set up national payment switch

The Nepal Rastra Bank (NRB) will set up a national payment switch in a bid to promote a cashless transaction. Unveiling the monetary policy on Friday, NRB aims to observe the fiscal year, 2022/23 as the year of promotion of electronic payment and transaction, for which it will stress necessary infrastructural development and creating awareness in the current FY, 2021/22.

The policy has emphasised the use of the country's own payment card while establishing interconnectivity among electronic payment gateways and clearing and recording digital payment gateways.

Special re-loans would be provided to payment service providers or payment system operators and communication service providers for the development and promotion of the ecosystem of the whole electronic payment system.

The central bank will make necessary arrangements for facilitating the payment of revenue and all sorts of payments through banking and digital system. Arrangements will be made for beneficiaries entitled to social security allowances to receive the allowances digitally from the banks dealing with government transactions.

The deadline for payment service providers and payment system operators to meet minimum transactions and customers has been extended until mid-July, 2022 over the ongoing COVID-19. Similarly, a digital loan guideline will be prepared and implemented for facilitating banks and financial institutions to provide their services like loan applications and approval digitally.

The policy aims to carry out a feasibility study of digital currencies in the country in the context when many foreign countries have adopted it or some others are at work. Arrangements would be made for anyone to apply for citizens saving bonds and foreign employment bonds digitally and a necessary study of the use of cloud infrastructure would be carried out.

There is a policy of carrying out a necessary study of the subject for payment providers to provide microcredits up to a certain amount in line with the concept of digital banking. This is to promote micro, small, and cottage industries and startups.

Payment service providers and payment system operators except for banks and financial institutions have to inform transactions beyond the ceiling and details of suspicious transactions to the financial information unit, said Governor Maha Prasad Adhikari.