across the country and internet connectivity has provided tremendous support to adoption of digital services. 1 / 5 bis - central bankers'speeches the covid 19 pandemic has accelerated the adoption of digital financial services in nepal. the necessity of contactless transactions and remote banking has further highlighted the importance of a robust digital infrastructure. nepal rastra bank has recognized this shift and is actively working towards creating an enabling environment for fintech innovation, ensuring regulatory frameworks that foster growth while safeguarding the interests of consumers and the stability of the financial system. ladies and gentlemen, allow me to substantiate our discussion on the changing face of financial services in nepal with some compelling data that reflects the robust growth in various payment instruments. in recent years, we have witnessed a remarkable surge in the adoption of digital payment solutions, underscoring the evolving financial landscape in our nation. the used of real time gross settlement system ( rtgs ) have facilitated large value transactions of the corporates and governments. i would share with this august gathering that over 95 % of government payments in nepal are conducted digitally which ranges from large value payment to contractors of infrastructure development activities to distribution of social security allowance to the citizens. it has marked a standard shift towards efficiency and transparency in financial transactions of the government. the volume of transactions using innovative platforms such as ips and connectips has experienced an exponential rise, with a notable increase of more than 67 % in the past 3 years. similarly, the volume of retail payment initiatives like qr code - based payments have also witnessed a tremendous uptick in popularity, showing an increase of more than 1100 % in last 3 years. the simplicity and security offered by qr codes have made them a preferred choice for consumers and merchants alike. we have prioritized the use of these technology in such an extent that even i went to local vegetable markets and groceries to encourage its adoption. the adoption of digital wallets has seen unprecedented growth in volume of more than 92 % in last 3 years, with the number of users relying on these platforms for everyday transactions. the versatility of digital wallets in facilitating peer - to - peer transfers, utility bill payments, and even online purchases has made them an integral part of the modern financial ecosystem. furthermore, the usage of cards, has shown a positive trajectory, showing an increase of almost 50 % in volume of transactions in the past 3 years. in addition to these encouraging numbers, we have achieved significant progress in cross border transactions, the memorandum of understanding

##uaring ahead of the holidays in the northern hemisphere ; developments in specific emerging markets ; and higher returns now being possible in developed markets. it is too soon to judge the possible extent and effects of this sell - off – hopefully it would not disrupt financial markets in affected countries. however, having painted such a rosy picture, one cannot help but also highlight the risks and uncertainties that currently face the world economy and financial markets. at the forefront of everyone ’ s minds is most definitely the behaviour of the oil market. it remains to be seen for how long the general level of inflation can withstand the current high oil prices, and recent comments by prominent central bankers the world over seem to point to increased concern about the impact of oil on inflation, going forward. south africa is no exception, and in the most recent statement of the monetary policy committee of the sa reserve bank, rising international oil prices were once again highlighted as a key risk for inflation. the effects of the very high oil prices are likely to increase if inflationary expectations start to react. secondly, the world remains plagued by geopolitical uncertainties in the middle east and other parts of the world. partly as a result of these tensions, combined with inflationary concerns starting to increase, the gold price has recently surpassed a series of 25 - year highs, trading above usd730 per fine ounce early in may 2006 before retracing to just below usd700. there are some in the market whose forecast is that the gold price might test the usd1000 per ounce level in the near term. a third risk to the global economy is substantial further increases in interest rates. despite various degrees of monetary policy tightening in industrial countries during the past two years, monetary conditions can still be described as relatively accommodative. any exogenous or endogenous factors that could lead to a sharper increase in rates could well threaten the strength of the global economy. in such circumstances, volatility and risk premiums are likely to pick up. a fourth concern that again surfaced recently was the issue of rising global imbalances, and in particular the widening current account deficit in the us, combined with significant surpluses in most of the asian countries, in particular china. the fact that the us has to date found it relatively easy to finance the current account deficit through capital inflows has to some extent obscured the risks associated with this imbalance. however, the us current account deficit, which according to the latest numbers amounted