Banking News – Nepal Clearing House Limited has concluded its 15th Annual General Meeting for fiscal year 2082/83. The meeting approved the balance sheet as of mid-Asar 2083 along with the audit report, profit and loss account, and cash flow statement, and decided to distribute 15 percent bonus shares and 0.789474 percent cash dividend for tax purposes.

Following this, NCHL’s paid-up capital will be equivalent to Rs 1 arab 67 crore 72 lakh 88 thousand 2 hundred. Through capital growth, the company will use the funds to upgrade existing infrastructure, develop additional payment systems for national payment systems, national and cross-border transactions, additional infrastructure for DPI, and strengthen risk management.

In fiscal year 2082/83, a total of 210 kharb worth of 23.82 crore payment transactions were settled through NCHL’s payment systems. In that fiscal year, based on the number and amount of transactions settled by the company, there was a 13 percent increase, and the company’s operating income increased by 7 percent. The company’s net profit stands at NPR 41 crore, which is 2 percent less compared to the previous fiscal year.

Through the Annual General Meeting, NCHL has also authorized the Board of Directors to advance necessary approvals and processes to establish a separate public limited company as a subsidiary or affiliated company of the company, with the objective of conducting research in banking/financial and payment-related technology, as well as technology and software development, installation, and necessary work related to it. The company will work with the objective of developing and installing technology and software necessary for the financial sector.

NCHL’s Board of Directors includes 1 representative from Nepal Rastra Bank, 3 from commercial banks, 1 each from development banks and finance companies, and 1 independent director. Nepal Rastra Bank holds 9.45 percent ownership in NCHL, while banks and financial institutions hold 90.55 percent.

The company has been operating systems including Electronic Cheque Clearing System (NCHL-ECC), Interbank Payment System (NCHL-IPS), Electronic Funds Transfer Card Switch, National Cheque Switch (NPS-NCS) under the National Payment Switch (NPS), Retail Payment Switch (RPS), National Payment Interface (NPI), and National Payment Interchange (NPIX). Similarly, the company has also been operating various payment methods including ConnectIPS, CorporatePay, ConnectRTGS, NepalPay QR, and NepalPay Card. Currently, 53 member banks and financial institutions including Nepal Rastra Bank, and more than 150 non-banking institutions are affiliated with NCHL as indirect members and technical members.