Mobile Banking Observes Exponential Growth as User Base Reaches 14 million

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Mobile Banking Observes Exponential Growth as User Base Reaches 14 million

September 21: Mobile banking, which is considered as a convenient medium for cashless transactions, has been growing exponentially. The number of mobile banking users has increased significantly during recent times, according to a report published by the Nepal Rastra Bank (NRB).

According to the Nepal Rastra Bank, the number of mobile banking users by the end Fiscal Year 2020/21 was 1,41,94,839. The number of mobile banking users was just 1,13,60,000 in Fiscal Year 2019/20. It means that the number of mobile banking users increased by 26 percent in the last year alone.

Lately, the central bank and other financial institutions have been emphasizing on cashless transactions. For this purpose, mobile banking has been deemed as an appropriate medium. The features of mobile banking include, deposition of money into a different bank account, payment of water, electricity, internet bills, mobile recharge, booking of airline ticket, payment of insurance amount and many more. Mobile banking also offers the facility of payment via QR code.

Nepal Rastra Bank has revealed that the number of mobile banking users has reached more than that of the debit card (ATM) users. By last June, the number of ATM card users was 88,39,855, which is much lower than the number of mobile banking users.

The usage of ATM cards in Nepal started in 1994 AD (2050/51 BS). But its usage couldn’t expand further for like 27/28 years. While on the other hand, the mobile banking services have turned the tables within the few years of introduction. The initial practice of mobile banking was observed in Nepal in 2004 AD.

Number of Mobile Banking Users

By June 2075


By June 2076


By June 2077


By June 2078


Source: Nepal Rastra Bank


The Chief of NRB’s Payment System Department, Bhuvan Kandel said that the number of mobile banking users has increased lately. He also said that the usage is still on the rise.

“Mobile banking is very easy as compared to other technologies in terms of electronic transactions. Due to this reason, its usage is expanding and being used extensively,” he said, adding, “As a whole, we feel that mobile banking has made a huge contribution to e-commerce.”

The impact of the Covid-19 pandemic has intensified the usage of mobile banking, according to the NRB.

Kandel says that the attraction towards mobile banking has increased due to the availability of many services. While promoting electronic transactions, banks have not been promoting ATMs much lately. Experts say that the impact of mobile banking has deterred bank customers from using ATM cards. Banks say that ATM technology is outdated now.

In a country with a geographical diversity like Nepal, it is not possible to expand ATMs everywhere. The customers have to walk for hours to reach the ATM. Therefore, NRB and bank officials say that mobile banking is now a suitable medium for business. Kandel says that after a certain period of time, technology like mobile banking could gradually replace cash transactions.




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