KATHMANDU.Rastriya Beema Sansthan (RBS) has inked an agreement to make its transactions digital using the payment system of Nepal Clearing House Ltd (NCHL).
The agreement was signed today by RBS Administrator Kabi Prasad Pathak and NCHL’s Chief Executive Officer Nilesh Man Singh Pradhan.
Once RBS integrates its internal payment system with NCHL IPS and Connect IPS e-payment system through National Payment Interface (NPI), it will be able to conduct various transactions, including settlement of insurance claims, payments of agent commission, salary, vendor payment, and investment directly.
The insured will also be able to easily pay their premiums online through Connect IPS e-Payment or through more than 5,000 bank branches and channels of NCHL affiliated financial institutions and payment service providers. All these transactions will be done directly from the bank accounts of the institution and the beneficiaries.
In order to mobilise internal resources and capital for the economic development of the country, to curb the expenditure of foreign currency and to establish efficient business insurance companies, the government-owned RBS has been operating as an insurance company under the National Insurance Corporation Act 1968.
The RBS has been taking various initiatives to digitise its business and operations and has recently changed its own core system, reads a statement issued today by the RBS.
Digitisation of payments and financial transactions through NCHL’s system is also expected to significantly improve the corporation’s services, boost cash operations and reduce reliance on cash and cheques.
NCHL currently manages online payments of insurance premiums of 26 life and non-life insurance providers, while five affiliated insurance companies are conducting fully automated transactions.
NCHL has developed and operated as an integrated interface of various payment systems, in which 62 member banks and financial institutions are affiliated, while various government and semi-government institutions, insurance companies, remittances, merchant banks and 51 non-banking institutions are affiliated as indirect or technical members.
A version of this article appears in the print on April 10, 2021, of The Himalayan Times.