Sakchyam Access to Finance, a project run by Department for International Development has supported 14 Commercial Banks to establish 57 new branches in rural municipalities of Karnali Province and Province No. 5 & 7.
These newly signed partnerships embody UKaid and Sakchaym’s resolve to support the Government of Nepal’s commitment to establish commercial bank branches in all the 753 municipalities in the country as part of decentralization.
Sakchyam’s support through these 57 branches will enable bank presence in the remotest municipalities in the country. Several of these locations are inaccessible by road and require walking for up to several hours.
After these 57 bank branches come into operation, the total no. of local levels with access to commercial banks will increase to 510.
The 57 new remote branch locations include:
- Karnali Province– Namkha and Tajakot in Humla, Chharka Tangsong in Dolpa, Mugumkarmarag in Mugu
- Province 5– Jhimruk & Naubahini in Pyuthan, Sukidaha & Lungri in Rolpa, and
- Province 7– Kanda in Bajhang, Swami Kartik in Bajura and Lekam in Darchula.
What do the authorities say on this development?
The central bank had urged the banks to expand branches through last fiscal year’s monetary policy and initiatives such as these confirm that the commercial banks are in fact keeping up to their promise. We are glad to note that the banking community has risen to the need of the hour by committing to having branch presence in all the municipalities in the country.
-Chiranjibi Nepal, Governor, Nepal Rastra Bank
Ministry of Finance is working towards ensuring that there is proper security and infrastructure to facilitate banks to go to the local units. We have taken into account all the concerns raised by the banks and will work towards addressing these issues collectively.
-Uttar Kumar Khatri, Joint Secretary, Financial Sector Management Division, Ministry of Finance
Through this support we are expanding the reach of banking services to the un/under-served rural populations, energizing economic development, as well as enabling local governments receive federal funding and undertake local financial management functions. Additionally, we are also hopeful that social security payments will be disbursed through these bank branches. These branches will also open avenues for over 1 million individuals and MSMEs in all local units in accessing full-fledged commercial banking services at their doorstep.
-Mr. Baljit Vohra, Team Leader, Sakchyam