Kathmandu: Nepal has made significant progress in expanding financial access, usage, and service quality, according to a new Financial Inclusion Index report released by Nepal Rastra Bank, the country’s central bank.
The report shows broad-based improvements across the financial system, indicating that more people are able to access financial services, use them more actively, and benefit from better service standards.
In fiscal year 2024/25, Nepal’s overall Financial Inclusion Index rose to 0.53, up from 0.47 the previous year, marking a substantial improvement within just one year. The index provides a comprehensive assessment of the level and progress of financial inclusion in the country. Nepal Rastra Bank noted that the index is calculated using a methodology similar to the Human Development Index, with values measured on a scale from 0 to 1, where higher scores indicate stronger financial inclusion.
The index is built from 55 separate indicators grouped into three dimensions: access, usage, and quality. Access and usage are each measured through 15 indicators, while quality is assessed through 25. Each dimension carries a specific weight in the final score: access accounts for 35 percent, usage for 45 percent, and quality for 20 percent.
The rise in the overall index from 0.47 to 0.53 reflects steady and wide-ranging improvements in the availability of financial services, how frequently they are used, and the standard of those services. All three dimensions recorded encouraging gains. The access index climbed from 0.47 to 0.53, signalling the continued expansion of financial institutions, service outlets, and digital delivery channels across the country.
The usage index increased from 0.49 to 0.54, showing that individuals and households are engaging more actively with banking, digital payments, insurance, and other financial products. Meanwhile, the quality dimension saw the sharpest improvement, rising from 0.41 to 0.50 in a single year. The report links this to meaningful advances in financial literacy, stronger consumer protection mechanisms, greater transparency, and an overall better customer experience.
These outcomes highlight the positive impact of policy initiatives by the central bank and other stakeholders, along with digital financial innovation and regulatory reforms. The report expresses confidence that rising financial inclusion will support more inclusive economic growth in Nepal.
However, despite the progress, the central bank stresses that further efforts are needed to deepen financial inclusion. Strengthening digital infrastructure, promoting financial literacy, and ensuring inclusive and customer-centered financial services remain key priorities to sustain momentum and broaden the benefits of financial development.
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