Case: e-Banking in Nepal 

Banking in Nepal started in 1937 A.D with the establishment of ‘Nepal Bank Limited’. This revolutionized a new ara of banking in Nepal. Similarly,  the evolution of Joint Venture (JV) started in 1998 A.D with theestablishment of the first joint venture bank, Nepal Arab Bank Limited (Now Nabil Bank). The credit card system was introduced only in the early 1990’s by Nabil Bank, whereas Automated Teller Machine (ATM) and the Tele-Banking (Telephone Banking) were first introduced by Himalayan Bank Limited in 1995 and 1997 respectively. Kumari Bank Limited and Laxmi Bank Limited were the first to introduce Internet-Banking (2002) and SMS-Banking (Mobile Banking, 2004) in Nepal, respectively.

Current Status of e-Bankig :The channels jn e-Banking available in Nepal are: 

  • Automated Teller Machines (ATM)
  • Point of Sales (POS)
  • Telephone Banking (Tele Banking)
  • Internet Banking and SMS Banking 

The services provided in ATMs are Cash Withdrawal and Balance Inquiry. But the fund transfer is not available. In POS Terminals financial transactions are made via Cards. Cah is debited from the client’s account’s and cash cannotbe deposited. In Tele-Banking we can check account status and inquiry balance but no fund transfer facility is available.  Whereas, in SMS-Banking similar to Tele-Banking expect telephone and cells phone is required  instead of telephone. In Internet-Banking fund transfer within accounts (within the bank ) facility is available and we can get balance statement online and also can pay bills online. Most common security issues in e-Banking (worldwide) are card duplication, key loggers,  and publishing e-mails. However, such frauds have not taken place in e-banking in Nepal. (Based on a Internet feature by Varun S. Shrestha)

         Discussion Issues

  1. What is the current status of e-banking in Nepal ?
  2. What could be the future of e-banking in the country?

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