As the local use of electronic banking transactions and digital banking increases, cash transactions are gradually decreasing with more than 16 billion notes in circulation drop in just one month.
According to Nepal Rastra Bank (NRB), cash transactions, along with cash circulation, is decreasing in Nepal.
The published data of Nepal Rastra Bank shows the cash circulation exceeded 7 trillion and 14 billion on October 2021. However, the number has dropped to 5 trillion and 99 billion in August 2022.
Rastra Bank Governor Mahaprasad Adhikari said that cash circulation has decreased due to the increase in popularity of digital banking.
Although the cash circulation has decreased till August, NRB will start issuing new notes aimed at the Dashain festival, so the cash circulation will increase in the next few months.
The concept of digital banking, online transactions and QR payment has increased after the COVID-19 pandemic with more than 4.2 million transactions via QR in just past one month.