With the introduction of federalism in Nepal, the policy to establish commercial bank branches in all 753 local levels to ensure financial access for every citizen has finally been completed after eight years. Although Nepal Rastra Bank (NRB) initiated this plan in 2017, one rural municipality remained without a bank branch until now. Saipal Rural Municipality in Bajhang, located in Sudurpaschim Province of far west Nepal, officially inaugurated its first bank branch on Monday, marking the completion of this initiative. The branch was opened by Everest Bank under the supervision of NRB Governor Mahaprasad Adhikari.

Until now, the absence of a bank in Saipal Rural Municipality forced residents, including elderly individuals, to undertake arduous three- to four-day journeys to the district headquarters, Chainpur, to access their old-age allowances. The bank had previously cited extreme remoteness and a lack of infrastructure as reasons for not opening a branch.

Saipal Rural Municipality is one of the most remote regions in the far west, unlike other municipalities connected by roads. The hilly terrain makes travel between villages time-consuming, with journeys between settlements taking an entire day. Additionally, the area has a sparse population; according to the 2018 census, only about 2,650 people reside in the municipality. Due to the lack of roads and a low population, banks initially proposed handling all government transactions, including social security payments, through Jaya Prithvi Municipality instead of opening a local branch.

In the fiscal year 2021/22, three local levels nationwide lacked commercial bank branches, including remote areas in Dhading and Junichande Rural Municipality of Jajarkot. However, by June 2022, bank branches had expanded to 752 local levels, leaving Saipal as the only remaining location without one. Now, with the establishment of a branch in Saipal, NRB spokesperson Ramu Poudel confirms that financial access has been achieved at all local levels.

Poudel acknowledged the difficulty of opening a bank branch in such a remote area but emphasized that Everest Bank has now provided access where local infrastructure allows. Reaching the new branch in Dhalaun, a village in Saipal Rural Municipality, is itself a challenge. From Chainpur, Bajhang’s district headquarters, one must take a three-hour jeep ride to Talkot, followed by a seven- to eight-hour trek to Dhalaun.

The administrative center of Saipal Rural Municipality is in Kanda, which requires an additional six- to seven-hour walk from Dhalaun. Given this geographical difficulty, the bank opted to establish its branch in Dhalaun rather than Kanda, ensuring relatively better access for residents.

To promote financial inclusion, the government had previously introduced the ‘One Person, One Account’ campaign. Under the federal structure, NRB directed commercial banks to ensure at least one branch was established at every local level. However, complaints persisted from residents of remote areas who were forced to travel long distances to access banking services for everything from old-age allowances to salary payments for government employees.

Former chairperson of Saipal Rural Municipality, Rajendra Bahadur Dhami, had previously stated that banks were aware of the region’s geographical challenges, including the high cost of house rentals, but still hesitated to open branches. The absence of banking services meant that some transactions in the village were conducted informally, and elderly residents had to endure 70-kilometer treks to the district headquarters just to collect their social security allowances.

Bankers had long resisted expanding to such remote areas due to the lack of essential infrastructure, including roads, electricity, internet connectivity, and secure office buildings. Many banks submitted formal letters to NRB citing these logistical challenges. In response, NRB implemented a round-robin system to ensure all commercial banks contributed to financial expansion across Nepal’s remote regions.

To expedite the process, NRB placed significant pressure on commercial banks to establish branches in all local levels. A lottery system was introduced, dividing responsibilities among the 27 commercial banks operating at the time. Under this system, Everest Bank was assigned the task of opening a branch in Saipal, Bajhang.

As of December 2024, Nepal had 107 banks and financial institutions, including microfinance entities. Among these, 20 were commercial banks, 17 development banks, 17 finance companies, 52 microfinance institutions, and one infrastructure development bank. The number of bank branches, including microfinance institutions, had reached 11,530 by July 2024 and increased to 11,545 by January 2025. With the addition of the Saipal branch, financial inclusion has now extended to every local level in Nepal.

The opening of the bank branch in Saipal represents a significant milestone in Nepal’s journey toward financial accessibility, particularly for marginalized and remote communities. While challenges remain, this achievement marks an important step in ensuring that every Nepali, regardless of location, has access to essential financial services.