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A combination of economic forces, shifting demographics, and technological developments is causing a significant upheaval in the banking sector in developing nations. Traditional paradigms are being upended by these movements, which also present exciting fresh opportunities for financial inclusion and economic expansion. Some key trends are briefed below:

Banks are now able to safely exchange consumer data with third-party financial service providers, thanks to open banking Application Program Interfaces (APIs). As a result, new financial services and solutions that are customized to meet particular needs are emerging within the financial ecosystem, encouraging cooperation and innovation. With so many different financial requirements unmet, emerging nations stand to benefit greatly from this trend.

In developing nations without official identity paperwork, traditional KYC (Know Your Customer) practices can pose a barrier to financial inclusion. Technologies for biometric authentication, such as iris and fingerprint scanning, present a viable remedy. These technologies can be leveraged to offer secure and trustworthy identification by utilizing mobile phones and local infrastructure, giving previously excluded groups access to financial services.

Due to a number of factors, including high operation costs and geographic limitations, traditional brick-and-mortar banks are finding it difficult to reach significant portions of the unbanked population in developing nations. But the advent of mobile banking and fintech is altering the landscape. Millions of people are now using mobile money platforms (esewa, mobile wallets, etc) which provide basic financial services such as credit, savings and payments via mobile phones. In rural areas, this "branchless banking" has a particularly positive effect, empowering people and small companies, which were historically excluded from the financial system.

Developing nations are placing increasing importance on sustainable banking practices. Banks are moving beyond traditional profit-focused models, now integrating environmental, social and governance (ESG) factors into their strategies. This reflects a recognition that responsible finance is crucial for long-term economic success and tackling global challenges like climate change and inequality.

As the information technology and communication technology penetration increases, cybersecurity threats also rise rapidly. Developing nations generally lack the strong infrastructure and knowledge necessary to effectively combat cybercrime. Building a safe digital financial ecosystem requires cooperation with regulators and significant investments from banks and fintech firms in security measures.

Many people in developing nations lack credit history, which is a prerequisite for many traditional credit scoring methodologies. The creation of new credit scoring models is made possible by the rise of alternative data sources, such as utility bills and usage habits of mobile phones. For the underbanked and unbanked communities, these models can more precisely evaluate creditworthiness, making loans and other financial products more accessible.

The technological prowess of big tech firms (e.g. Apple with Apple Pay, Google with Google Pay, etc.) is fueling a significant transformation in the financial services sector. This transformation opens doors for innovation but also raises concerns such as data privacy, increased regulatory complexity, competition for traditional banks, etc. Balancing innovation with fair competition and fostering a diverse financial ecosystem are crucial challenges for policymakers.

The Banking Landscape in Developing Countries: Financial inclusion, economic expansion, and social development have enormous potential thanks to the changes reshaping the banking sector in these nations. Governments, authorities, banks, fintech firms, and civil society must work together to navigate these developments, though. In developing nations, the financial sector can adapt to meet the needs of all, creating a more sustainable and inclusive future. 

This can be achieved by tackling issues like cybersecurity, encouraging responsible innovation, and maintaining fair competition. In addition with advancement in artificial intelligence(AI) which empowers banks to unlock hidden insights, predict risks and personalize services, propelling them into a future of smarter finance and happier customers and from fraud detection to streamlined operations, AI automates tasks, frees up human expertise and fuels efficiency, driving cost savings and a competitive edge in the banking landscape. For the industry, it is crucial for unlocking a promising future.

The caste system, the world’s oldest surviving social hierarchy, has left an indelible mark on societies, particularly in Nepal. Stemming from distinctions in professional roles that often lead to the derogation of certain professions, the caste system determines one's social standing from birth, making it nearly impossible to alter or move between caste categories, with the exception of inter-caste marriages. This article delves into the historical roots of the caste system in Nepal, its socio-economic implications, and the persistent challenges posed by caste-based discrimination.

The caste-based system creates a hierarchical structure within society, with far-reaching consequences. Studies in 2005 revealed that while the ‘upper castes’ constitute only 35 percent of the general population, they make up 98 percent of all army officers, highlighting a stark imbalance. 

The system also leads to the creation of a status-governed personality, stigmatization, and the maintenance of the status quo with control over state privileges. Caste-based practices reinforce fatalism, legitimize exclusion through religious preaching, and perpetuate continuous discrimination for the benefit of a privileged class.

Multifaceted challenge across socio-political spheres

In Nepal, Dalit participation in administrative bodies reveals a significant gap, with national statistics highlighting notable income inequality between Dalit and non-Dalit households. Dalit households, unfortunately, earn less income, underscoring their status as the most disadvantaged caste group in the country. Shockingly, advancements in maternal health services have disproportionately bypassed the Dalits, further exacerbating their challenges.

Recognizing the need for inclusivity, efforts have been initiated to address the underrepresentation of Dalit women in formal sectors, striving for their proportional participation. Despite these efforts, the struggle persists, reflecting the broader issues faced by the Dalit community. Reports on political and electoral participation in South Asia provide valuable insights into the challenges hindering Dalits from actively engaging in governance and decision-making processes. The complex interplay of social, economic, and political barriers continues to impede the full integration of Dalits, emphasizing the urgency of comprehensive and collaborative solutions.

They are significantly underrepresented in governmental and decision-making bodies, which makes it difficult for them to influence laws that directly affect their lives. When the socio-political scene is analyzed, the results of the local elections in 2022 paint a shocking picture. In Madhes, out of 1,271 wards across 136 municipal levels, the Dalit group elected only one mayor and two deputy mayors. This basic portrayal is worrying, especially in light of the larger picture.

When one looks more closely, the data shows even more differences. Dalits obtained only 33 ward chairperson posts out of 136 local levels, demonstrating a weak representation even at the grassroots level. The state of affairs in national politics is still depressing. 

Not a single Dalit was elected to a seat in the Madhes, even though 32 MPs were chosen using the First-Past-the-Post (FPTP) system. In the same way, only one Dalit person was elected out of the 64 Provincial Directly Elected Members of Parliament.

These statistics show how critical it is to address Dalits’ underrepresentation in sociopolitical domains. The biased results of the elections in 2022 highlight a structural problem that prevents Dalits from being fairly and equally included in decision-making processes at all levels of government. The lack of Dalit voices in positions of leadership raises questions about the political system’s responsiveness and inclusivity, necessitating investigation and corrective action to guarantee a more inclusive and participatory democracy.

In society, recognition or identity based on one’s status becomes the source and justification for discrimination. Institutionalized discrimination reinforces the status quo, sustaining special advantages for the powerful. Subordination thus becomes an outcome of institutionalized discrimination, reinforcing the existing social order.

True equality is only possible by dismantling discriminatory practices that perpetuate advantages for one group at the expense of another. The concept of equality is inherently tied to the notion of change, as progress can only be achieved by challenging and transforming the conditions that justify discrimination.

What should be done?

The state must take proactive measures, including the realization, recognition, entitlement, commitment, accessibility, and enjoyment of rights. Monitoring indicators of full and practical realization is essential to ensuring tangible progress.

The judiciary should adopt a proactive and human rights-sensitive approach. It plays a crucial role in upholding and protecting the rights of marginalized communities, ensuring justice is served without discrimination.

The general public and advocacy groups need to internalize the concept of equality through awareness and education programs. Active participation, public interest lawyering, lobbying efforts, and publicizing discriminatory practices are vital in challenging the status quo.

Nepal has taken legislative steps to address caste-based discrimination, such as the Caste-Based Discrimination and Untouchability (Offense and Punishment) Act, 2011. The Constitution of Nepal explicitly condemns discrimination based on caste and untouchability, emphasizing the right to equality and social justice.

In Conclusion, Caste-based discrimination continues to plague Nepalese society, impacting the lives of millions. It is imperative to recognize the historical roots, socio-economic implications, and pervasive practices of discrimination that persist. Achieving equality requires a commitment to change and a dismantling of institutionalized discrimination. The state, judiciary, and the public all play crucial roles in fostering an inclusive society where every individual enjoys equal rights and opportunities. Through collective efforts, Nepal can pave the way for a future free from the shackles of caste-based discrimination, embracing the principles of equality, justice, and human dignity.

The author is pursuing BA LLB at Kathmandu School of Law 

Recently, the Supreme Court Bar Association (SCBA) marked its 50th anniversary with an event hosted at the Everest Hotel in Baneshwar. The commemoration, however, came with certain participation requirements set by the organizing committee, including a compulsory entry fee of Rs 2,500 per person and the obligatory wearing of an ID card throughout the event.

This meticulous approach regulating entry may have been intended to ensure that only those who had duly paid the fees and were legitimate members of SCBA were granted access.

At present, the Supreme Court Bar boasts an impressive roster of over 700 registered members. Despite this substantial membership base, the event witnessed a notably modest turnout, with fewer than 250 members in attendance, signaling a proportionately low participation rate.

In reflecting on the Golden Jubilee of the Bar, one cannot help but ponder on potential avenues that could have been explored to augment accessibility and inclusivity for all members. An alternative approach might have been the reduction or complete elimination of entry fees, thereby allowing every member, regardless of financial constraints, to actively engage in the celebratory occasion.

The organizing committee could have also contemplated collecting fees under different titles at a later stage to mitigate the impact on immediate financial burdens. Regrettably, the adherence to stringent fee restrictions resulted in a substantial majority of the Bar’s members being unable to participate in this historically significant event, leading to widespread disappointment among the legal community.

Also, within the legal profession, it is imperative to uphold certain practices that foster an environment devoid of discrimination. Regardless of one’s age, level of experience, or seniority, it is incumbent upon Bar members to extend equal respect and salutations to their peers. This principle is not only a matter of professional courtesy but also contributes to the overall harmonious functioning of the legal fraternity.

Notably, the courtroom serves as a microcosm of this ethos, where judges and fellow advocates alike bestow equal respect upon each other. This mutual regard not only exemplifies the nobility of the legal profession but also underscores the shared commitment to justice and fairness. It is this egalitarian approach that enhances the professional camaraderie and upholds the dignity of the legal practice.

Bar vs Bench

However, despite these commendable aspects, a discernible gap and tension have begun to surface between the Bar and the Bench. This development is less than ideal for a seamless functioning of the legal system. Addressing and mitigating these emerging conflicts should be a priority, as they threaten to undermine the very essence of a profession built on principles of justice, integrity and mutual respect. Nurturing a collaborative and cooperative relationship between the Bar and the Bench is essential to preserve the beauty and efficacy of the legal profession in its entirety.

Numerous decisions emanating from SCBA and the comprehensive pronouncements of the Supreme Court’s full bench have inadvertently given rise to a discernible gap between the Bar and the Bench. The continuation of these divisions holds the potential to foster discrimination between judges and advocates, thereby casting an unfavorable shadow upon the legal community as a whole. The symbiotic relationship between the Bar and the Bench risks being marred by these persistent gaps, ultimately affecting the harmony that should ideally characterize both communities.

Even during significant events organized by the Bar, such as the Golden Jubilee celebration program, instances of discrimination have been observed. The placement of senior members in the front rows and juniors relegated to the back rows during such events has raised eyebrows among Bar members. This practice, far from being well-received, has contributed to a growing sense of discrimination within the legal fraternity.

In recent years, the leadership of the Bar has faced challenges marked by a perceived lack of strength and professionalism. The prevalence of political appointments occupying leadership positions has overshadowed the appointment of individuals with a strong professional background. The presence of opportunistic leaders has made it arduous for the Bar to function cohesively. Consequently, this leadership vacuum has not only affected the Bar’s internal dynamics but has also become a source of discord, as the Bench and Court leadership have, in turn, started displaying discriminatory tendencies towards the Bar.

It is imperative for the Bar to reassess its leadership selection process and prioritize individuals of high moral standing and unwavering commitment to the legal profession. A leadership characterized by ethical values and a genuine dedication to the legal field will undoubtedly fortify the Bar and contribute to its strength. The same principle holds true for the Bench, emphasizing the need for ethical and dedicated individuals in leadership positions to maintain the delicate balance between the Bar and the Bench, ensuring a harmonious and equitable legal community.

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

Nepal has evolved into a platform for international non-governmental organizations’ (INGOs) ‘revolutionary efforts’. These groups have been essential to the recovery of communities dealing with a range of issues because of their dedication to social justice and development. In Nepal, INGOs have been instrumental in resolving societal issues and promoting constructive change via their redemptive efforts. This article examines how these groups’ efforts not only result in social redemption but also act as a gentle prod to improve government accountability and also examines how INGOs work in Nepal to bring about good change and to act as a gentle prod, encouraging the government to take more responsibility.

INGOs in Nepal have been quick to respond to natural catastrophes and humanitarian emergencies by providing both short-term aid and long-term rehabilitation. Their redemptive endeavors go beyond catastrophe relief, exploring the fields of education, healthcare, reducing poverty, and empowering women. INGOs serve as agents of good change by tackling systemic problems and offering practical solutions. The education sector is one prominent area where INGOs have pushed the government toward accountability. These groups have built schools, supplied educational materials, and instituted teacher training programs; these actions have prepared the groundwork for a more comprehensive education system. 

The underlying message is very clear: Government accountability for providing high-quality education for all citizens is essential to the growth of society. INGOs have played a crucial role in bridging gaps and resolving imbalances in the healthcare sector. The construction of healthcare facilities, launch of public health initiatives, and distribution of necessary supplies all serve to highlight the dedication to enhancing public health. These activities subtly call on the government to give healthcare policy and infrastructure top priority because they understand the critical role that healthcare plays in ensuring population health. 

INGOs have moved into microfinance and poverty reduction efforts in an attempt to achieve economic redemption. These groups help to break the cycle of poverty by providing small enterprises with support, financial resources, and vocational training to local communities. The government is poignantly reminded of its responsibility to promote economic inclusiveness and sustainable development through the success of such programs. In Nepal, INGOs have taken the lead in questioning gender expectations and promoting women’s rights. Programs for women’s empowerment, from economic possibilities to education, strongly emphasize the value of inclusion. INGOs force the government to review and enhance laws that support women's rights and gender equality by doing this.

Obstacles and accountability

INGOs have made significant contributions, but there are still obstacles that need to be carefully considered, such as increasing reliance on them, coordination problems, and cultural sensitivity. Furthermore, the necessity of government accountability becomes increasingly evident when INGOs actively participate in community development. For lasting success, INGOs and the government must work together in a balanced manner. 

Even with INGO initiatives’ beneficial effects, problems still exist. Some opponents contend that local government mechanisms may unintentionally be weakened by INGOs’ influence. This necessitates striking a careful balance between bolstering domestic institutions and providing international assistance. #To guarantee sustainable development, there has to be open communication and accountability between INGOs and the government. Beyond its immediate effects on communities, INGOs’ redemption in Nepal also acts as a spur for government responsiveness and responsibility. Certain INGOs’ actions may be viewed as interfering with national sovereignty. This is especially true if it is believed that INGOs are imposing their objectives or dictating policies without taking into account the political, social and cultural environment of the nation.

An excessive dependence on INGOs for technical and financial support might lead to dependency. When INGO sponsorship wanes or changes in emphasis, the government may find it difficult to maintain programs and activities. INGOs may find it difficult to properly comprehend and honor the customs, social mores and cultural heritage of the area. Local communities may oppose projects that are in conflict with their cultural values. Certain non-governmental organizations may encounter censure due to their opaque operations, financial administration and decision-making procedures. This may give rise to questions regarding responsibility. 

INGOs encourage policy reforms, empower communities and address important social and economic concerns in order to push the government to be more inclusive, transparent and efficient. Collaboration between INGOs and the government will be crucial to ensuring sustainable and inclusive growth as Nepal continues on its development path. These groups act as a reminder to the government to fulfill its obligations as they support improvements in gender equality, healthcare, education and economic empowerment. 

Sustainable development necessitates a cooperative relationship between INGOs and the government so that the restoration of Nepal’s social fabric is a joint venture based on openness and responsibility. It is essential for INGOs and the government to work together harmoniously in order to build on past accomplishments and overcome future obstacles. They can steer Nepal in the direction of greater resilience, empowerment and accountability by working together. Redeeming efforts from INGOs in Nepal act as a little but powerful prod that encourages more transparency and responsive governance. Cooperation between INGOs and the government is essential as the country moves forward. This collaboration, which is based on open communication and common objectives, is essential to bringing about long-lasting improvement for the people of Nepal