Bridging the Financial Gap for Nepal’s Rural Poor

Financial institutions in Nepal were established with the mission of uplifting the economic status of underprivileged communities. However, most of these institutions are concentrated in urban areas and continue to operate through conventional methods, leaving the rural poor without access to essential financial services. Various development agencies have formed groups and introduced microfinance programs, but once their projects end, these groups are often abandoned without further support or guidance.

A World Bank study highlights this stark reality—around 50% of Nepal’s total population still lacks access to financial services.

The Birth of Jana Utthan Samudayic Bank Ltd.

Recognizing this gap, Jana Utthan Pratisthan took inspiration from the research "Social Inclusion in Microfinance" by Dr. Man Bahadur BK (2010) to promote community banking as a means of creating an inclusive financial system. This initiative led to the establishment of Jana Utthan Samudayic Bank Ltd., bringing in innovative strategies like "credit-first individual intervention" to ensure financial inclusion at the grassroots level.

Although the bank is officially registered as a microfinance development bank ; was named Jana Utthan Samudayic Bikash Bank. However, as per the directive of Nepal Rastra Bank (NRB), the central bank of Nepal, it was later renamed Janautthan Samudayic Laghubitta Bittiya Sanstha Limited to align with the regulatory framework for microfinance institutions.

JSLBSL is designed as a community banking initiative with a strong commitment to reaching the most marginalized populations. Its core mission is "Building an Inclusive Financial System – Extending Services to the Poorest of the Poor." Additionally, it seeks to uplift indigenous knowledge and traditional skills, transforming them into commercially viable opportunities.

A Recognized Leader in Inclusive Microfinance

• Registered: April 10, 2010, under the Company Act, 2006
• Banking Operations Began: November 14, 2010, under the Bank and Financial Institution Act, 2006
• Global Recognition: Acknowledged by the Global Microcredit Summit Campaign with a Certificate of Appreciation for its efforts in poverty reduction
• Client Protection: Actively involved with the Smart Campaign for ethical financial practices
• Innovative Model: Recognized as a third-generation microfinance institution (as cited in Nepal: Zone of Peace – A Revised Concept by Isabelle Duquesne, 2011)

Janautthan Samudayic Laghubitta Bittiya Sanstha Limited stands as a pioneer in financial inclusion, striving to empower Nepal’s rural communities with sustainable financial solutions.

Vision

The vision of the institution is to contribute in reducing poverty through accelerating socio-financing services to the marginalized/deprived communities. 

Mission

The mission of the institution is to uplift the socio-economic condition of the marginalized/deprived communities through credit plus services and mobilizing savings at grassroot level.

Goal 
The goal of the institution is to work as a self-sustained community financing institution and serve a maximum number of the marginalized/deprived communities through delivery of socio-financing services at their door steps.

Objectives

• To provide socio-financial services to the marginalized/deprived communities who are financially ‘unreached' and support them for economic activities.
• To provide credit to create income and employment opportunities and help to reduce poverty level in general and women of the target communities in particular.
• To develop an institutional mechanism to link/graduate various informal community-groups, Co-operatives and CBOs into the formal community banking institution and enhance their capacity for community financing through business development services, business/financial counseling, entrepreneurial consultation, financial/banking practices etc.
• To promote self-employment by exploring the areas of investment in native skill, knowledge, arts and culture.
• To help in rehabilitation and social reintegration of under-privileged, landless, war-victim, historically bounded and displaced people through financial services and other social intermediations.
• To promote community projects such as eco-tourism, social-enterprenuership, green growth initiatives, renewable energy and community/collective farming/business.