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Digital banking can be defined as the availability of banking services through online platforms, encompassing both transactional and non-transactional services. This eliminates the need for customers to physically visit brick-and-mortar banks. Technological empowerment is a key driver behind the seamless delivery of these services. Customers commonly interact with banks through various digital channels, including websites, mobile apps, social media, mobile banking, email, Viber/Messenger and call centers.

Customers can avail themselves of banking services through these digital channels or by directly visiting branches or using ATMs/POS. The array of options includes online shopping, mobile banking, third-party wallets/websites, Visa cards, payment options, POS machines and ATMs. The surge in access to finance through digital channels, such as internet and mobile banking, has been accompanied by the adoption of payment methods like debit cards, mobile wallets and QR codes.

In Nepal, where over 72 percent of the population owns mobile phones, these devices have become instrumental in promoting financial inclusion. E-wallets have emerged as convenient tools for making cashless payments. The utilization of digital channels and payment methods brings numerous benefits to individuals, facilitating easier savings, money transfers and access to financial services. Businesses stand to have improved efficiency, reduced costs and a broader customer reach. The Covid-19 pandemic played a significant role in accelerating the adoption of digital banking platforms in Nepal. Many banks responded to the challenges resulting from the pandemic by launching online account opening and e-KYC filling services during the Covid-19 lockdown. Nepal’s e-payment landscape has witnessed a remarkable surge over the past four years. 

From 2020 to 2023, Nepal's e-payment landscape experienced an impressive surge in transaction volume, witnessing a remarkable growth of over 300 percent. However, the transaction amount exhibited a more nuanced pattern, initially soaring and later experiencing a slight dip in the last year. Despite this recent decline in value, the sheer volume of transactions underscores the rapid transition toward digital payments in Nepal. As of mid-October 2023, when examining the volume of e-payment transactions, the top three channels utilized are mobile banking, e-Wallets and debit cards. Collectively, these three channels account for 66 percent of the total number of transactions conducted.

Mobile banking, debit cards and e-wallets have reshaped Nepal's financial landscape. The widespread adoption of smartphones and the expansion of mobile networks have propelled the popularity of mobile banking, providing users with features such as fund transfers and bill payments. Debit cards offer a widely accepted cashless transaction method, particularly in urban areas. Simultaneously, e-wallets have gained traction due to their simplicity and versatility.

The significant surge in the frequency of digital commerce reflects the recent expansion of Nepal's digital payment system. While there is still a considerable journey ahead, the ongoing transformation of the Nepali payment system is due to the collective efforts of relevant stakeholders, including Nepal Rastra Bank and other government agencies, the private sector, and the ultimate consumer—the people.

Nepal has embraced the digital age wholeheartedly. While this digital evolution brings convenience and efficiency, it also introduces new threats, making the safeguarding of digital assets an integral aspect of national security. One common attack in the banking sector is phishing, a technique involving the deception of individuals into divulging sensitive information, such as usernames, passwords or credit card details by posing as a trustworthy entity. Phishing attacks can target both bank customers and employees, potentially leading to unauthorized access to accounts or sensitive banking systems. Malicious software, or malware, presents another threat by infecting computer systems to gain unauthorized access, steal information, or disrupt operations. Malwares can target online banking systems, compromising customer credentials and facilitating fraudulent transactions.

Denial-of-Service (DoS) attacks overwhelm a system, network, or website with traffic, causing it to slow down or become temporarily unavailable. Disruption of online banking services due to excessive traffic can result in financial losses and undermine customer confidence.

In a Man-in-the-Middle (MitM) attack, malicious actors intercept and potentially alter communication between two parties without their knowledge. This type of attack can lead to the capture of sensitive data during online transactions, including login credentials or financial details.

Criminals may also affix devices to Automated Teller Machines (ATMs) to capture card information and Personal Identification Numbers (PINs) from unsuspecting users, leading to unauthorized withdrawals and compromising customer accounts.

Ransomware poses yet another threat, encrypting a victim's data and demanding a ransom for its release.

Social engineering involves manipulating individuals to disclose confidential information through psychological tactics. These attacks can trick bank employees into providing access to credentials or sensitive information.

To mitigate such risks, banks should implement a comprehensive framework that identifies, assesses, prioritizes and monitors IT risks. This framework should align with regulatory requirements and industry best practices. Regular vulnerability assessments, coupled with a layered security approach involving firewalls, intrusion detection systems, access controls, encryption and data loss prevention solutions are essential components of a robust cybersecurity strategy.

Automation tools can play a crucial role in tasks such as patching, configuration management and incident response. Additionally, leveraging data analytics enables proactive detection and response to threats.

As Nepal continues its digital journey, the imperative for robust cybersecurity has become increasingly evident due to a growing reliance on digital services and communication, exposing the nation to various cybersecurity threats, ranging from ransomware to data breaches. Building a team of skilled cybersecurity professionals, keeping employees informed about recent threats in the international market, conducting periodic third-party IT security audits and ensuring compliance with industry-specific regulations like PCI-DSS and Basel III are crucial steps to mitigate IT risks. These regulations address data privacy, security and operational resilience, providing a comprehensive framework for enhancing cybersecurity in the financial sector.

The author is a member of Information Systems Audit and Control Association , USA

“Just days ago, I was on the melting ice of Antarctica. Not long before, I was among the melting glaciers of Nepal. These two spots are far in distance, but united in crisis. Polar ice and glaciers are vanishing before our eyes, causing havoc the world over: from landslides and floods, to rising seas...” This is what United Nations Secretary-General Antonio Guterres said to the world leaders during the opening of the Global climate change conference, COP28.

His acknowledgment of Nepal’s problems resulting from climate change is noteworthy.

During his visit to Nepal, he journeyed to the Sagarmatha Base Camp, Annapurna Base Camp, and the birthplace of Shakyamuni Buddha, Lumbini. This illustrates his profound affection for Nepal and its people.

Guterres also participated in a high-level roundtable discussion titled ‘Call of mountains: Who saves us from the climate crisis’, organized by Nepal and chaired by Prime Minister Pushpa Kamal Dahal. During the session, he expressed his concern, stating, “It is profoundly alarming to witness the rapid melting of Nepal’s mountains. Hearing firsthand from local communities about the devastating impact on their lives is deeply distressing.”

Furthermore, he emphasized, “Nepal, alongside other vulnerable mountainous nations, bears the brunt of a crisis not of their making. Over just 30 years, the country has lost nearly a third of its ice, a direct consequence of greenhouse gas pollution warming our planet. This loss results in swollen lakes and rivers that flood, washing away entire communities.”

Guterres’ statements signify his sensitivity to the issues facing Nepal and other mountainous countries. He urged developed nations to extend support to countries like Nepal through climate funds and the pursuit of climate justice. This recognition marks a significant milestone for Nepal on the global stage.

There has long been a debate regarding the relevance of the UN due to its perceived failure to intervene effectively. However, on Dec 8, Secretary-General Guterres invoked Article 99—a rarely utilized clause in the UN Charter—to caution the Security Council about the escalating situation between Israel and Hamas, highlighting its potential threat to international peace and security.

In a letter addressed to the 15-nation council, Guterres cited the “appalling human suffering, physical destruction and collective trauma across Israel and the Occupied Palestinian Territory” as grounds for invoking Article 99. This marked the first time in his nearly seven-year tenure that he utilized this crisis-oriented provision. The last explicit invocation of Article 99 was in 1971, amid the war leading to the creation of Bangladesh and its separation from Pakistan.

Guterres’ action underscores the UN’s capacity to intervene in humanitarian crises, reaffirming the significance of its existence. It showcases a leadership dedicated to upholding human rights and humanity in crisis situations.

The developed nations, being major funders of the UN, often have their specific reservations and expectations from the UN and its leadership. In numerous instances, past UN leaderships have aligned with the directives of developed nations. However, Guterres has demonstrated a commendable balance and timely intervention, navigating between various interests and perspectives.

He has managed a delicate equilibrium, considering the concerns and expectations of developed nations while making independent and appropriate interventions when necessary. Guterres’ ability to uphold the UN’s integrity while taking decisive action when called for signifies a balanced and nuanced approach to leadership within the international organization. Hence, it has helped to make the UN stay relevant even in a fast-changing world.

The author, a member of the Supreme Court Bar, has been practicing corporate law for around three decades

Mahaludin Khatoon, 64, strolls alongside a lush green rice field on a bright and sunny day. A solar panel sits right in the middle of the field. Once there, she extends her hand behind the panel and presses a green switch to activate her pump. There is a distant gurgling sound for a moment and soon after water gushes past her hand and into the adjacent irrigation channel.

With a satisfied smile, Mahaludin remarks, “Every day, this solar-powered system brings life to these fields, ensuring a bountiful harvest for our community.”

Over the past decade, a quiet revolution is taking place in Nepal’s Tarai belt, as farmers are ditching diesel pumps in favor of grid-connected solar irrigation pumps (SIPs) to irrigate their lands. 

Solar-powered pumps are particularly valuable for irrigation because they can be used in remote or off-grid locations where other power sources may not be readily available. Diesel pumps, predominantly operated by the men in agricultural communities, limit women’s participation in critical agricultural activities.

Diesel pumps are often rented—a challenge for women since they typically lack their own income—and present other logistical challenges. The need for transport to and from the rental location is a hurdle in itself. These pumps are heavy and cumbersome to transport, which can be particularly daunting for women who may not have access to suitable means of carrying them. Furthermore, the process of manually starting the diesel pumps can be physically demanding and technically intricate.

Mahaludin says, “In the past, using diesel pumps was a challenge for me, and I was primarily confined to household duties. However, since we installed the grid-connected solar irrigation pump, I can now effortlessly manage the pumps even when my son or husband aren’t home. I no longer have to rely on anyone else or experience delays in irrigating the fields.”

Mahaludin skilfully irrigates her kitchen garden using a motor. Her ability to operate the SIP with ease has brought a sense of independence, eliminating the need to depend on male counterparts of her family for field irrigation. A female committee has been formed in Chipparmai Rural Municipality to oversee decision making related to the solar irrigation pumps. Mahaludin leads this female committee.

Although gender roles have been deeply entrenched for centuries in Chipparmai, having a grid-connected SIP has been a game-changer for women like Mahaludin Khatoon. Access to solar irrigation pumps lets women take charge of their farming operations—they can irrigate their fields, leading to increased crop yields and potentially higher income. By adopting solar technology, women farmers can also contribute to sustainable farming practices by reducing their environmental impact.

Behind the scenes, dedicated individuals like Bhulan Kumar Shah, a junior technical assistant, play a pivotal role in promoting SIPs and gender-responsive agriculture. Bhulan’s involvement with SIPs dates back to their inception, and he has witnessed firsthand the transformative impact of this technology.

Bhulan explains that the allocation of SIPs is not arbitrary; rather, it’s a well-thought-out process. Last year, out of the 48 farmers who received SIPs, 10 were women who seized the opportunity. Alternative Energy Promotion Center (AEPC) offers a 60 percent subsidy, with the remaining 40 percent funded by the rural municipality. But notably, when land is registered in a woman’s name, Bhulan says the allocation receives priority treatment, expediting the process. The SIPs also come with a two-year warranty, ensuring their reliability and longevity.

SIPs were first introduced in Nepal in 2012, which played a pivotal role in demonstrating the technical viability of SIPs for groundwater irrigation in the Tarai and lifting irrigation in Nepal’s mid-hill regions, then followed by a larger pilot program. These pilot initiatives emphasized the importance of government’s financial support to offset the substantial initial costs, thereby ensuring the economic feasibility of SIPs for Nepali farmers.

To promote SIP adoption, the government initiated its subsidy program in 2016, which has since resulted in a significant increase in female applicants, now comprising one-third of the program’s participants. With a primary objective of promoting renewable energy technologies (RETs) across the country, the AEPC was established in 1996 as a semi-autonomous national entity under the Ministry of Energy, Water Resources and Irrigation. It extends a subsidy of 60 percent, with the remaining 40 percent being contributed by the rural municipality.

Traditionally the land is generally owned by the men in families. When women work at the land, the income from the produce is taken by the male family member. An intriguing aspect emerged as we spoke to Mahaludin and her 29-year-old son Najir Miya. Even though the family’s ancestral land is registered under her husband’s name, any new land acquired is registered in the wife’s name—Mahaludin’s name, to be precise.

This deliberate shift in land ownership is not a mere coincidence; it’s a strategic move driven by practicality. The land revenue system bestows certain advantages upon women who own land, making the process quicker and more economical. The registration fees for land under a woman’s name stand at a modest three percent, a significant reduction from the 10 percent levied on land owned by men. It’s a gender-responsive approach that benefits both the family and the community.

These pumps are not merely instruments for irrigating fields; they are catalysts for change, bridging generations, empowering women, and revolutionizing agriculture. Grid-connected SIPs have revolutionized the way water is drawn for farming, making it not just more sustainable but also more environmentally friendly. This transformation couldn’t have come at a better time, as climate change-induced uncertainties loom large over the agrarian landscape.

In the gentle hum of a SIP, we hear the whisper of progress, the promise of a more equitable future. The story of Mahaludin Khatoon is emblematic of the larger narrative unfolding across rural landscapes. It’s a narrative of resilience, adaptability, and the harmonious coexistence of tradition and innovation. The journey of grid-connected SIPs has just begun, but the path ahead is illuminated by the warm embrace of the sun, the ingenuity of farmers, and the determination to create a better tomorrow for all, one drop of water at a time.

The Global Climate Change Conference, COP28, started on Nov 29 and concluded on Dec 12. With 84,000 registered attendees, this year’s COP proved successful in terms of participation. Throughout COP28, Nepal, chair of the Least Developed Countries (LDCs), underscored the pressing need for dialogue concerning mountain and climate change issues. 

The Nepali Pavilion took an active role by hosting a minimum of five sideline events daily. The conference had an estimated 250 Nepali delegates, half of whom were youths, actively engaging in the conference. Pratik Ghimire of ApEx interviewed three such youths to gather insights into their COP28 experiences.

Pratima Khadgi

As a representative of UNDP Nepal, I played diverse roles during the initial phase of COP28. My active involvement in event management bolstered UNDP’s presence and ensured smooth operations. I fervently advocated for youth engagement in climate action at the international pavilion, enhancing Nepal’s global visibility.

Participating in various sessions provided me with an understanding of climate change from different perspectives. Discussions on climate financing complexities underscored its pivotal role in fostering sustainable initiatives. This experience significantly improved my understanding and reinforced my determination to tackle climate challenges.

I engaged wholeheartedly in COP28 discussions, leaving the event enriched with valuable insights and a renewed dedication to champion environmental causes.

Shreya KC

This being my fourth COP, I’m familiar with the decision-making processes and the roles of civil society, youth, and most affected countries. Yet, sitting in the closing plenary, I can’t ignore the doubts about the legitimacy of processes that allow a few countries to overpower many voices, consistently sidelining the most vulnerable. This space repeatedly excludes them.

While I’m inspired by fellow passionate youth, this experience has taken a toll on my mental health and physical well-being. Leading youth engagement in the global stocktake process kept me occupied amid late-night discussions. I was stressed but hopeful for meaningful outcomes.

The final global stocktake result falls short, acknowledging urgency without a clear roadmap. Notably, fossil fuel lobbyists increased significantly, but I found inspiration in Small Island Developing States (SIDs) pushing for more ambitious outcomes.

Prakriti Koirala

This marks my third COP attendance, where I’ve consistently participated as a negotiator under the ‘Party’ badge. In previous COPs, my primary focus was on engaging in loss and damage (L&D) negotiations. But, this time, at the request of the LDCs chair, I took on the responsibility of organizing events in the LDC pavilion. While my previous experiences largely centered on the negotiation process, this new engagement in event organization provided me with a unique and enriching learning experience. 

I had the opportunity to participate as a speaker and panelist in various events as well.

Although there’s room for improvement, I’m pleased with the progress made on our major agendas this year, particularly the establishment of the L&D fund and addressing mountainous agendas.

I’m also thrilled about the increased youth involvement. Their active participation in protests, negotiations, and other events is a promising indication that the younger generation is taking climate change seriously. Additionally, I’ve established valuable networks during this COP, fostering connections that could lead to fruitful collaborations in the future.