Nepal Telecom appoints a new CEO for its newly set up mobile money service company. Board of Directors of Nepal Telecom has appointed Krishna Prasad Bhandari, the co-spokesperson of Nepal Telecom (NT), as the new Chief Executive Officer (CEO) of Nepal Digital Payment Company during a meeting held on Tuesday.
Nepal Digital Payment Company is the new subsidiary company of Nepal Telecom, founded to provide mobile money service to its users. Nepal Telecom received a Letter of Intent (LoI) to start the company in full-fledge from Nepal Rastra Bank (NRB) last month. Established with an authorized capital of NRs. 1 billion, the company is a joint venture of Nepal Telecom and Rashtriya Banijya Bank (RBB). However, Nepal Telecom owns the majority of the company’s share. The company has a paid-up capital of 40 crores.
New company’s work in progress
The newly appointed CEO, Krishna Prasad Bhandari, said that this is a mobile wallet that aims to provide mobile financing services to its users, and they have tried to make it a little resilient. He also said that he would primarily work on getting the license of mobile money service within the time limit. He further added that even if the company comes in the form of a mobile wallet in the market, they are brainstorming on what additional facilities to add to it.
Similarly, Telecom has invited international bids to bring mobile money service in operation. For the supply, delivery, installation, and commissioning of the mobile financial solution, an international bidder has to submit a sealed bid application within Asoj 2 (i.e. 45 days from the tender publish date).
According to Telecom, Krishna Prasad Bhandari will continue as the interim CEO until a new CEO gets appointed through the systematic process. To speed up the work, they will recruit more employees along with the CEO.
Benefits of Nepal Telecom’s mobile wallet
There are almost 14 online payment platforms in Nepal that are serving the public. But Nepal Telecom’s mobile wallet is the first of its kind that enables users to use their mobile money as a wallet fund. It means NTC SIM users can use their phone money to perform digital transactions online.
NTC users can easily link the mobile balance to their digital wallet account of the same mobile phone number and use it as a wallet fund to store, send, and receive funds in an online payment platform.
The service reduces the hassle to stand in a long queue for government payments, which we can settle from home in lesser time. It promotes a cashless economy and the practice of social distancing.
We can have a secure transaction of purchasing goods and services online, withdrawing cash, paying bills. You can also top-up your mobile via this payment service provider. It will also be uncomplicated for government offices to manage the customers and their payments. Read How to use digital wallets in Nepal?
Nepal Telecom has only six months to operate the mobile financial service, as per the Letter of Intent received from Nepal Rastra Bank. They started by establishing its subsidiary company and appointed a CEO for the company. Within six months of receiving a Letter of Intent, the company should commence its service.
According to Nepal Rastra Bank, there are 23 companies with a Letter of Intent to set up an online payment platform. Among which, 14 are mobile wallet, and 9 of them are payment system operator. Read the Top digital wallet/payment platforms in Nepal.
Will Nepal Telecom’s new subsidiary company for mobile money service be able to compete with the existing players in the field of digital payment platforms? You can share your thoughts in the comment box below.