A World Bank report has shown that access to financial services is limited for the most of Nepali people. Department for International Development's survey on access to financial service 2006 said such access has declined.

A news release on the survey report of World Bank said about 38 percent of Nepalese households had an outstanding loan exclusively from the informal sector and 15 percent from the formal sector.

The release quoted Ken Ohashi, World Bank's country director for Nepal as saying that despite efforts by the government to address the situation, formal financial institutions did not serve the needs of most people in Nepal, especially low-income households and small business.

According to the report, only 26 percent of Nepalese households have bank account and Bank's procedures perceived as being the must cumbersome financial institutions. "Accordingly, clients prefer not to save them in. Financial NGOs and Cooperatives run a close second round as the largest provider of deposit accounts, serving 18 percent of households" the report said.

The report further said microfinance and regional rural development banks were a distant third provider of deposit accounts, serving only four percent of households mainly in rural people.

The report also suggested that the government create enabling environment that makes small business lending safer, cheaper and faster, promote micro-finance industry, enhance financial literacy, promote viable loan schemes and create legal and regulatory environment that protects micro-finance consumers, among others.