December 23: The number of digital transactions which had increased after the government imposed lockdown in March has now declined to some extent. According to Nepal Rastra Bank, digital transaction declined in the month of Kartik (mid-October to mid-November) compared to the previous months.

The citizens of Nepal had given high priority to digital transaction over cash payment after the government imposed lockdown on March 24. Although the government lifted lockdown and restrictions some months ago, people were still using digital transaction as preferred means of payment. However, that trend has declined since the last two months, according to data made public by the central bank.

According to Nepal Rastra Bank, digital payment through mobile banking, internet banking, RTGS (Real Time Gross Settlement), IPS, Connect IPS wallet, e-commerce business among others has declined in the review period.

The central bank’s data shows that transactions through mobile banking dropped considerably in the review month with 206,000 less transactions than the previous month. In mid-September to mid-October, around 78,50,000 transactions took place through mobile banking, which dropped to 76,43,000 the next month.

Likewise, internet banking saw 54,000 less transactions during the review month compared to the previous month.

A total of 275,000 transactions worth Rs 6 billion occurred through internet banking in mid-September to mid-October, which declined to 221,000 transactions worth Rs 5.43 billion in mid-October to mid-November.

Despite the decline in number of digital payments, Nepal Rastra Bank says the overall use of digital means for making payment has increased significantly due to the improvement in infrastructure and the people’s reach to electronic devices.