Financial Institutional Operations in Nepal Background of the Country Nepal is one of the least developed countries in the world having US$ 220.00 per capita income. The Nepalese economy is predominantly an agricultural economy. About 81 percent of the population is engaged in the agriculture sector whereas about 86 percent of the population lives in the rural sector of the country. Agricultural sector contributes 40 percent to Gross Domestic Product (GDP) of the country. According to the National Living Standard Survey 1996, about 42 percent of the population were found to be living below poverty line but at the end of the Ninth Plan 2001, the figure has comedown to 38 percent. Nepal has been witnessing planned development efforts since the last four and a half decades. The Ninth Five Year Plan has just completed in 2001. The objectives envisaged in most of the plans aim at reducing poverty. However, the intensity of poverty in the country calls for massive and genuine efforts. An Overview of Financial System The history of modern financial system of Nepal was begun in 19......

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