Prime Minister Oli calls for free small digital transactions amid rising concerns over mobile banking fees

KATHMANDU: Prime Minister KP Sharma Oli has taken steps towards making small digital transactions free of charge, following growing concerns among the public about the high fees associated with mobile banking transfers. In response to the issue, the Prime Minister addressed the matter through a Facebook post, expressing that the topic had caught his attention due to numerous suggestions from the general public.

Recently, the Prime Minister’s Chief Political Advisor, Bishnu Rimal, also voiced criticism on social media regarding the expensive service fees for mobile banking. Rimal’s remarks have fueled the ongoing conversation about the growing costs for mobile-based financial services.

Prime Minister Oli, addressing the matter publicly, noted that as even the smallest transactions are now conducted digitally due to the widespread availability of internet services, the government is actively discussing the feasibility of making these transactions free.

He said, “Recently, I have received suggestions from friends on Facebook about the additional charges for mobile banking transfers. Nowadays, many of us regularly transfer funds digitally. Perhaps due to the convenience of the internet, we have become accustomed to going cashless for even the smallest transactions. I am currently discussing the possibility of making small digital transactions free with the relevant authorities.”

This statement comes amid criticisms over the government’s recent decision to impose Value Added Tax (VAT) on digital transactions, which has made mobile banking more costly. Despite the government’s pledge to promote a digital economy and encourage cashless transactions, this tax policy has been perceived as counterproductive by many.

Under the current fiscal year’s financial act, the imposition of VAT on digital transactions has significantly raised mobile banking fees, sparking discontent among the public. Critics argue that the tax policy discourages the growth of the digital economy, despite the government’s stated goals of promoting electronic payments and reducing cash usage.

As the government faces pressure to revise its tax policies on digital transactions, Prime Minister Oli’s efforts to make small transactions free are seen as a step in the right direction to support the digital economy and ease the financial burden on consumers.