Digital Drive, Policy Push Lift Nepal’s Financial Inclusion Index: NRB Report

Expanded access to financial services and increased use of digital platforms helped lift Nepal’s Financial Inclusion Index in the last fiscal year (FY 2024/25), Nepal Rastra Bank said in its latest assessment.

According to the Financial Inclusion Index (FII) released by the central bank on Sunday, the overall FII rose from 0.47 in the previous fiscal year to 0.53 in fiscal year 2024/25, reflecting expanded outreach of banking and financial services, growing use of digital financial platforms and improvements in service quality.

NRB said all three components of the index—access, usage and quality—posted encouraging performance during the review period. The Access Index increased to 0.53, indicating continued expansion of banking and financial institutions, service points and digital delivery channels across the country.

Similarly, the Usage Index reached 0.54, showing higher engagement of individuals and households with banking services, digital payments, insurance and other financial products. The Quality Index improved to 0.50, reflecting gains in financial literacy, stronger consumer protection mechanisms, improved transparency and a better overall customer experience.

According to the NRB, the Financial Inclusion Index is calculated using a methodology similar to the Human Development Index, with values normalised on a scale of 0 to 1, where a higher score represents greater financial inclusion. The index is based on 55 indicators, grouped under three dimensions—access (35 percent weight), usage (45 percent) and quality (20 percent).

NRB attributed the improvement to policy initiatives, increased adoption of digital financial innovations and enhanced regulatory oversight. The central bank, however, noted that sustained efforts to strengthen digital infrastructure, promote financial literacy and ensure consumer-centric financial services remain crucial to further deepen financial inclusion and support inclusive economic growth.

Read the original report: Financial-Inclusion-Index-2025.pdf