November, 10 – Rural Microfinance Development Centre is taking large steps to further improve the financial and institutional capacity of Nepal’s microfinance institutions. RMDC— one of the prominent wholesale lending institution for Nepal’s Micro Finance movement—and the UKaid Sakchyam Access to Finance Programme signed a partnership today to further their common objectives to improve rural poor communities’ access to financial products and services in thirty-four districts.
With UKaid Sakchyam’s support, RMDC will launch its program entitled “Enhance Inclusive Financial Frontier to the Poor” to increase outreach to rural MFIs in the country. The partnership will open new RMDC branch offices in Kohalpur of Sunsari district and Itahari of Banke district to cater around 90 MFIs from Sakchyam intervention districts.
Along with the support of UKaid Sakchyam, the proposed branches of RMDC will work as a delivery channel to provide wholesale loans and to build capacity of MFIs. RMDC will also provide different tools and techniques to provide financial literacy to respective MFIs in rural areas.
Speaking at the event, Mr. Jyoti Chandra Ojha, CEO, RMDC said, “MFIs and wholesale lending have played an important role in bringing financial services to rural Nepal. We, RMDC will give our level best to meet the ends of the rural population to overcome the gaps of financial services and I am confident that Sakchyam’s support will help us work toward those goals with more resolve.”
Mr. Pritha Bahadur Thapa, Manager- Micro Finance Service Department, RMDC said, “Enhancing access to finance for people living in remote and inaccessible regions is an urgent need. However, making such services sustainable is also critical. We embark on this journey together today with the shared belief that it is critical to increase the capacity of micro finance institutions and promote wholesale lending to better reach the rural poor.”
Reiterating Sakchyam’s financial inclusion objectives, Mr. Baljit Vohra, Team Leader, UKaid Sakchyam said, “As we know that progress and development in Nepal is inseparably tied to empowering its most rural poor communities and bringing them into the financial mainstream. RMDC has been playing a crucial role for such communities and we are excited to partner with such a dynamic team in bringing about transformative change.”