149 bank branches closed in Nepal, major changes in financial institutions due to increase in digital transactions

Kathmandu. In the last one year, banks and financial institutions in Nepal have closed 149 of their branches across the country. Especially commercial banks and development banks have closed a large number of branches located within municipal areas. However, banks are not allowed to cut staff despite closing branches.

Nepal Rastra Bank, through the first quarterly review of the monetary policy of the current economic year, had made a provision that if any bank has a large number of branches in any municipal area, then the bank can take its own decision and merge or integrate them.

Following this provision of monetary policy, the Central Bank issued instructions allowing integration of branches without cutting staff or causing unnecessary trouble to the employees.

Under this, a total of 118 branches of 7 commercial banks and 3 development banks located in Kathmandu, Lalitpur, Pokhara, Biratnagar, Birganj and Bharatpur Municipal Corporations have been integrated. However, till the month of Vaishakh of the current financial year, a total of 149 branches of banks and financial institutions have been reduced.

A spokesperson of the Central Bank of Nepal said that due to increasing use of digital mediums in financial transactions, a policy of branch adjustment has been brought for banks and financial institutions operating a large number of branches in municipal areas.

He said, “After the branch adjustment policy of the Central Bank, there has been integration of 118 branches of 10 banks and financial institutions. Where digital business is increasing, banks and financial institutions are now operating branches only on the basis of need and justification.”

After the branch adjustment policy of the central bank, NIC Asia Bank has closed the maximum number of 44 branches. Similarly, Kumari Bank has closed 24 branches and Nepal Investment Mega Bank has closed 18 branches.