Digitizing Civil Registration and Cash Transfers in Nepal

This article from the World Bank discusses the impact of digitizing civil registration and cash transfers in Nepal through the Strengthening Systems for Social Protection and Civil Registration Project (SSSPCR). It outlines the challenges, approaches, and results of this initiative. The article highlights the improvements in service delivery, financial inclusion, and governance brought about by the project. This is valuable for policymakers and practitioners interested in leveraging digital technologies for social protection and civil registration.

Key Insights

Online Civil Registration

Over 6,600 wards (more than 97 percent of the country’s wards) are now registering civil events online, improving the accessibility and efficiency of this service. Nepal’s birth registration rates of children under five have increased from 58 percent in 2014 to 77 percent in 2019, demonstrating a significant improvement in coverage. Digitized birth registration can help the government to harmonize early years interventions across health, education, and social protection sectors.

E-Payment of Social Security Allowances

The Social Security Allowance (SSA) is now paid via banks in all local levels to 3.5 million people, enhancing the timeliness of delivery, controlling leakages, and promoting financial inclusion. Switching to electronic payments has helped control leakages of SSA funds by reducing errors and ‘ghosts’ in two stages: de-duplication of the beneficiary database during digitization and KYC (know your customer) checks at the time of opening beneficiary account. “Using the e-payment pilot conducted in 2013/14 as the basis, the combined impact of the above two stages could mean elimination of over 20 percent of ghost beneficiaries in the system” (World Bank, 2023).

Digitization of SSA Beneficiary List

Digitization of the SSA beneficiary list means that government has a list of the demographically vulnerable consolidated in one place that is updated on a quarterly basis. During crisis and emergency situations, this list can be used to expedite relief transfer. The project has also supported digitization of past civil registration documents.

Integrated Social Registry (ISR)

The project is also currently supporting the design and development of an integrated social registry (ISR). The ISR is an integrated database of households with their demographic and socio-economic data which will provide a platform for identification of beneficiaries and coordination across multiple social programs including those for disaster relief.

Key Statistics & Data

• 6,600+ wards (97% of country’s wards): Now registering civil events online.
• 58% to 77%: Increase in birth registration rates of children under five (2014 to 2019).
• 3.5 million: Number of SSA recipients receiving payments via banks.
• 20%: Potential reduction in ghost beneficiaries due to digitization and KYC checks.
• NPR 134 billion (>$1 billion): Government’s SSA allocation for FY23.

Implications and Conclusions

The SSSPCR project has made significant strides in modernizing service delivery, protecting vulnerable populations, promoting financial inclusion, and improving governance in Nepal. The success of online civil registration and e-payment systems demonstrates the potential of digital technologies to enhance social protection programs. Continued investment in the ISR and addressing challenges related to connectivity and human resources are crucial for sustaining these gains. The ISR will provide an integrated platform for identification of the poor and vulnerable and improve coordination among all tiers of the government.