Financial Institutions on The Rise in Janakpurdham

Janakpurdham, July 11: The number of new banks and financial institutions is on the rise in Dhanusha district following the entry of millions of rupees in remittances into the district.

The financial institutions that had been displaced during the conflict are being reinstated following the entry of remittances.Remittance has an important role in the development of rural economy as well.

According to statistics made available by the Nepal Rastra Bank Janakpur chapter, there were 14 banks of 'A' class, two of B class, four of C class and four of D class until mid-January, 2012   in the district.   Investment of agricultural loan by these banks until the same period was 2.32 billion rupees and loan investment was Rs. 2.42 billion. Savings of these banks stands at over Rs. 11.59 billion.Of the total population in the district, some 6.7 percent ( 2.4 million people) are abroad for jobs.  Rs 223 billion entered into the district in remittances in the last fiscal year. 

Remittances amounting to Rs. 30 million enters into the district daily.  But most of the portion of the amount received in remittances is invested in real estate and following this, price of land and housing skyrocketed in the district.The need of investing the remittance in productive sector has been stressed.

However, despite improvement in the economic condition of the Dhanusha folks, most of the arable land has remained barren due to lack of  human resources necessary for agriculture.