Micro, small, and medium enterprises (MSMEs) are the backbone of Nepal’s economy, yet have historically faced challenges in accessing traditional banking services. To address this, Nepal Rastra Bank (NRB) is leveraging technology and innovation to bring them into the financial system.

“MSMEs are key drivers of growth and job creation in our country, representing more than 95% of all businesses,” says NRB Governor, Maha Prasad Adhikari. “NRB has taken several initiatives to promote their financial inclusion through digital financial services and digital payments.”

“Some MSMEs and customers are hesitant to shift from traditional cash transactions to digital platforms,” says Hem Prasad, NRB’s Director of Financial Inclusion and Consumer Protection Division. “To overcome this, NRB has been promoting internet banking, mobile banking, wallets, corporate payment systems, interbank payment systems, and QR code-based systems to facilitate low cost and instant digital transactions, which are particularly beneficial for MSMEs.”

AFI interviewed a number of small business owners in Kathmandu about their experience with QR code payments, who mentioned that QR codes have increased efficiency, eliminated fears over counterfeit notes, and made it easier to manage their finances. You can watch our interviews with NRB staff and local vendors in the video below.