Kanchanpur lies in Mahakali Zone in Province 7 of Nepal. Mahendranagar is the district headquarter. The district, with an area of 1,610 sq. km is divided into nineteen VDCs and one municipality. Kanchanpur has 82,152 households with a total population of 451,258 (Male 216,042 & Female 235,206).
Economic and Financial Landscape
Agriculture (including livestock and poultry), cottage industries and trading are the main economic activities of the district. 75.65% of the households stated that agriculture forms their major source of income. Among the registered small and cottage industries, majority work in the service sector followed by the productive sector.
The district is served by 35 different branches of ‘A’ Class Commercial Banks and 16 different branches of ‘B’ Class Development Banks. The population served per branch is 9,872 against the national average of 8,960. This indicates the need to further expand the outreach of financial services and facilities to the unbanked population of the area.
The population of Kanchanpur consists of 28.93 percent Chhetris, 25.68 percent Tharus, 15.96 percent Brahmins, 7.72 percent Kamis followed by others, in terms of caste/ethnicity. Rana Tharu, a sub group of Tharu, has different language, dress and religious practices and belong to the Far Western Region of Nepal. Kanchanpur is not free from women discrimination; women are less involved in economic activities and have less access to financial services. A key focus of Sakchyam is to increase the access to financial services and facilities that would ultimately help reduce the discriminatory practices towards women and DAGs.
Sakchyam’s Ongoing Interventions
Value Chain Financing Innovations
- Sugarcane Invoice Discounting – targeting sugarcane farmers has been launched in partnership with Bank of Kathmandu (BOK) in the district.
- Laxmi Bank has launched Tractor Loan targeting farmers in Kanchanpur. They have also introduced Sakchyam Udhyami Karja, Micro Mortgage, E-Rickshaw and Livestock Loan in the district.
- Kanchan Development Bank has launched Warehouse Receipt Financing targeting farmers in the district.
- Wholesale Loan to Dairy Cooperatives, in the Dairy Value Chain has been launched in partnership with NMB Bank in the district.
Delivery Channel Innovations
- The programme has been able to reach the unbanked population of the district through the launch of four BLBs through Janata Bank, four BLB Touch Points in partnerships with Everest Bank and two with Bank of Kathmandu in the district.
- So far, UNYC and NUBL have introduced the use of tablets in the district.
- To increase financial access for rural poor, one bank branch has been established via partnership with BOK, one branch with Shikhar Insurance in the district.
Financial Literacy Initiatives
- Various programmes on Financial Literacy are being introduced through conventional channels as well as alternate delivery channels such as Tablets and mobile phones. These programmes have been launched in partnership with NUBL, UNYC, and RMDC.
- NUBL is conducting financial literacy campaigns in the district through Centre Meeting Modules videos.
- RMDC is conducting financial literacy campaigns through various activities such as school level interactions, message dissemination through mass media, Centre Meeting Modules and PGT.
- UNYC is conducting financial literacy campaigns through PGT, IVR, Centre Meeting Modules, and FM Radio.
- Janautthan has been using flip chart, videos and financial literacy manuals for carrying out different financial Literacy activities.
- Business Loan and Ujyalo Loan Products have been designed and implemented in the district in partnership with UNYC. This product has now been scaled up and launched in 36 other branches of UNYC. Similarly, UNYC’s Plan Savings is introduced also in Kanchanpur.
- The programme is supporting Machhapuchhre Bank and Sanima Bank to deploy Dedicated ARMs to increase financial services to the rural poor.
 National Population Census (2011)  National Sample Census of Agriculture (2011-2012)  Nepal Rastra Bank (July 2018  National Population Census 2011