Finacial Consumer Protection- Context of Nepal

Financial Consumer Protection is the safeguard of consumers dealing with financial products and financial institutions. According to World Bank, Financial Consumer Protection encompasses the laws, regulations and institutional arrangement that safeguard consumer in financial market.

The basic of Financial Consumer Protection is to ensure the safeguard of every consumer who are associated with the financial products and institutions. With the large number of consumers associated with financial products, there has been aroused range of risk within it. And in order to mitigate the risk associated with the Financial Products and Institutions make laws and regulations are being implemented and are still on development phase.

The huge numbers of people are still excluded from the mainstream financial services and this figure is comparatively more in developing and under developed country like Nepal. In order to bring them within the territory of Financial Inclusion, the Financial Consumer protection plays vital role.

The main thing comes here is who are the financial consumers? The topic itself is a vague but I am particularly concerned right now with the people using financial products and are associated with the financial market whether they are institutional or individual.

The basic principle of Financial Consumer Protection is the risk based approached that have been implemented in case if any financial grievance come. How an individual and institutional customer gets treated with legal opinion and solution when they meet with irregularities with their financial products and institutions.

The numbers of cases have been increased in recent years where the consumers are facing many difficulties and irregularities while using financial products. Few happening and burning cases are fraud in Mobile Banking transactions, various online transactions associated with fake business ID, misuse of consumers financial data like card numbers, PIN.

The use of Fintech services definitely has introduced many technologies to ease the use of financial products but also have associated with many financial risks. And in the event of fraud, the consumer only is the victim of it and goes through the financial losses.

The proper guidelines, laws and regulations should be taken into effect to ensure the financial misuse and fraud. And the consumers themselves and financial service providers should be more vigilant and cautious while using financial services and dealing with the financial institutions.

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