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BoK Launches Kissan Banking Sewa

  1 min 37 sec to read

The Bank of Kathmandu (BoK) has introduced ‘BOK Kissan Banking Sewa’ with the aim of bringing the rural mass into the formal financial channels. This product aims at setting up a culture to save for the future among all communities and include them in the banking system, according to the bank. Ajaya Shrestha, the CEO of the bank said this new scheme has been introduced after receiving overwhelming response for some other products of the bank.
 
According to the bank, this product will use the branches as the focal points and utilise technological solutions like mobile banking. The bank already has a mobile banking product branded M-PAISA. It says, “In order to ensure service accessibility to the target segment without any additional cost, all services available under M-PAISA are made free of charge.”
 
According to a press statement released by the bank, the product is based on SHG (Self Help Group) model wherein people will organise themselves in a group of five members and participate in the programme.
 
The group members can deposit certain amount in their individual accounts for a stipulated period. Once the standard criteria for the deposit volume are met, they will be eligible for the loan. The loan till a predefined limit will be provided upon the group’s guarantee without any collateral, the statement says.
 
The bank claims that the product is the first of its kind from the commercial banks of Nepal. The bank expects such products would benefit Nepal’s agro-based economy. The strategy is expected to contribute positively to the rural development by instilling financial habits amongst the rural people.
 

Jawalakhel and Sankhu branch are chosen as the first phase locations to serve as the central points of these products.

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