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SOME BARRIERS TO FINANCIAL INCLUSION IN NEPAL
Despite the considerable progress made, some barriers to financial inclusion remain in Nepal:
1. RELATED TO FINANCIAL INFRASTRUCTURE:
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> Geographical disparity and physical distance, inadequate service outlets in rural areas > Inadequate policies, laws and strategies in financial literacy, insurance, access to finance, financial consumer protection and financial inclusion.
2. RELATED TO ACCESS, USAGE AND QUALITY OF
FINANCIAL SERVICES:
> Low access to finance. > Insufficient and poor quality of financial services.
3. RELATED TO FINANCIAL CONSUMER PROTECTION:
> Inadequate of financial consumer protection mechanism.
4. RELATED TO CREDIT GOVERNANCE:
> Lengthy and time-consuming procedural complications with respect to credit expansion. > Traditional and collateral-based lending process.
5. OTHERS:
> Low level of financial education and literacy. > Informal and non-formal financing, shadow banking practices. > Poor monitoring and evaluation of financial inclusion activities. > Low level of household incomes.
