Microfinance Focus, December 8, 2012: IFC, a member of the World Bank Group, is supporting Nepal to develop an efficient national payment system to regulate all electronic payment mechanisms in the country, assisting integrates small businesses and consumers in the economy.
Developed in collaboration with the World Bank, the project includes building efficient payment mechanisms like mobile money and evolving a comprehensive legal and regulatory framework for the payment system. The South Asia Enterprise Development Facility, managed by IFC, in partnership with the UK government and the Norwegian Agency for Development Cooperation, is supporting the initiative.
“A safe, reliable and efficient national payment system will expand access and support economic growth, boosting growth of small and medium enterprises,” said Madhu Kumar Marasini, Joint Secretary and Chief of Foreign Aid Coordination Division in Nepal’s Ministry of Finance.
Strengthening the legal and regulatory framework will facilitate introduction and adoption of innovative payment products in both urban and rural markets. Promoting electronic payment services will result in greater transparency and make it easier for the under-served to carry out transactions. Nepal Rastra Bank, the country’s central bank, will implement the roll-out.
“Reforms in the payment system will help attract private investment and bring efficient services to those excluded from the formal banking system,” said Fred Zake, IFC
Senior Operations Officer in Nepal.
IFC, in collaboration with the World Bank, pursues an integrated approach to develop retail payment systems, utilizing technology to expand reach of financial services. The World Bank works with public authorities across the world to support comprehensive payment reforms and collaborates with standard-setting bodies to develop and enforce standards for payment systems.
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