Nepal Sees Significant Improvement in Financial Inclusion Index, Reaching 0.53

Kathmandu. There has been a notable improvement in access, usage, and quality of financial services in Nepal. According to the Financial Inclusion Index published by the Nepal Rastra Bank (NRB) on Sunday, the overall Financial Inclusion Index increased from 0.47 to 0.53 in the fiscal year 2024/25.

The report published by the Financial Inclusion and Consumer Protection Department of the Nepal Rastra Bank shows significant progress in this index.

“Stable and broad progress has been made in the Financial Inclusion Index due to the expansion of access to financial services, the use of digital mediums, and improvements in service quality,” the central bank stated.

According to the report, the index, calculated using a methodology similar to the Human Development Index, is based on a scale of 0 to 1, where a higher figure indicates greater financial inclusion. The index was prepared based on 55 indicators across its three dimensions: access, usage, and quality.

The report mentions that the access index reached 0.53, indicating the expansion of financial institutions, service centers, and digital financial service channels across the country. Similarly, the usage index stands at 0.54. This signals increased involvement of individuals and households in banking, digital payments, insurance, and other financial services. Furthermore, the quality index has reached 0.50.

“Significant progress in the quality index is due to the increase in financial literacy, strengthening of consumer protection mechanisms, enhancement of transparency, and improvement in customer experience,” the central bank's report stated.

The Nepal Rastra Bank noted that policy initiatives, digital financial innovation, and regulatory reforms have had a positive impact, emphasizing the need for continued focus on strengthening digital infrastructure, promoting financial literacy, and customer-centric financial services in the coming days.