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By Dipesh Ghimire

Nepal Strengthens Cyber Defenses as Digital Banking Risks Continue to Rise

Nepal Strengthens Cyber Defenses as Digital Banking Risks Continue to Rise

As Nepal’s digital financial ecosystem expands rapidly, concerns over cyber threats and data security are becoming increasingly prominent. Against this backdrop, the Nepal Bankers Association (NBA), in collaboration with Visa, organized a national-level workshop in Kathmandu aimed at strengthening the country’s cyber resilience. The event, titled “Strengthening Cybersecurity Resilience in Nepal,” was held on Magh 14 and brought together key stakeholders from across the financial and security sectors.

The workshop was organized at a time when digital payments, mobile banking, and online transactions are growing at an unprecedented pace. While these developments have improved financial access and efficiency, they have also increased Nepal’s exposure to cyber fraud, data breaches, and digital crimes. Organizers said the program was designed to help institutions better understand emerging threats and improve their preparedness.

High-level representatives from government agencies, regulatory bodies, security institutions, banks, financial companies, and international development partners participated in the event. According to the organizers, this broad participation reflected a shared recognition that cybersecurity is no longer a technical issue alone but a national priority linked to economic stability and public trust.

The inaugural session was attended by officials from the Ministry of Communication and Information Technology, the cyber security directorate of the Nepal Army, Nepal Rastra Bank, and the International Finance Corporation (IFC). Their presence highlighted the growing importance of inter-agency coordination in protecting Nepal’s digital economy.

Addressing the workshop, NRB Deputy Governor Bamb Bahadur Mishra stressed that effective cyber risk management is essential for the sustainable development of the financial sector. He warned that technological advancement without adequate security infrastructure could expose banks and customers to serious financial losses. He urged financial institutions to invest equally in digital innovation and security systems.

Two major technical presentations formed the core of the workshop. The Nepal Police Cyber Bureau presented an analysis of emerging trends in cyber fraud and online crime in Nepal. The bureau highlighted the increasing use of phishing, fake investment schemes, digital wallet fraud, and social engineering attacks, noting that existing legal and enforcement mechanisms are struggling to keep pace with evolving threats.

Visa, on the other hand, presented its global experience under the theme “Building a Secure Digital Future.” The company shared international best practices, advanced security technologies, and collaborative models used in other countries to combat cybercrime. Experts emphasized that strong partnerships between financial institutions and technology providers are critical to preventing large-scale cyber incidents.

A high-level panel discussion on “Building a Coordinated National Cybersecurity System” brought together bankers, regulators, and cybersecurity specialists. Panelists underlined the need for stronger inter-agency coordination, continuous capacity building, and enhanced public-private partnerships. They argued that fragmented efforts could weaken national defenses, while coordinated systems could significantly improve response mechanisms.

Participants also noted that many financial institutions in Nepal still lack specialized cybersecurity teams and modern monitoring tools. As digital transactions increase, these gaps could become major vulnerabilities. Experts stressed the importance of regular audits, employee training, and real-time threat monitoring to reduce institutional risk.

In the closing session, Vice President and Chief Operating Officer for Visa India and South Asia, Vaibhav Taranekar, announced a new capacity-building initiative. He said specialized cybersecurity training programs would be conducted in all seven provinces of Nepal. This initiative aims to strengthen local-level expertise and reduce dependence on centralized technical support.

Organizers said the workshop served as an important platform for knowledge exchange, policy dialogue, and institutional collaboration. NBA stated that such forums are essential for aligning regulatory frameworks with technological change and ensuring that financial institutions remain resilient in an increasingly digital environment.

Analysts believe the program reflects a growing awareness among policymakers and bankers that cyber risks can undermine financial stability if left unaddressed. Recent incidents of online fraud and data leaks have already affected customer confidence, making cybersecurity a strategic concern rather than an operational issue.

While the workshop marks a positive step, experts caution that sustained commitment is needed. One-time events alone cannot address deep structural weaknesses. Continuous investment in infrastructure, legal reforms, skilled manpower, and regional cooperation will be necessary to build a robust national cybersecurity system.

Overall, the Kathmandu workshop signals Nepal’s intent to proactively confront digital threats. As the country moves toward a more technology-driven economy, strengthening cyber defenses will remain central to protecting consumers, safeguarding financial institutions, and maintaining trust in the digital financial system.

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