The proportional distribution of land has always been a political issue in Nepal. In the backdrop of the increasingly complex problem of those who own land not farming and those who depend on agriculture not having land, the government has moved forward to implement the concept of a land bank.

Although it was not included in the Act in 2076, it could not be included in the regulations. This subject, which was included in the Land Use Act, 2076, finally came into the regulations after 7 years . Now that the path to its implementation has been opened, many are curious, how does it work and who benefits from it ? We have tried to explain this subject in five questions and answers .

1) Why and how did the government introduce the concept of land banks?

The government has turned to land banks after the arable land across the country was shrinking, only partially used, and a lot of land was lying fallow. The main goal is to increase food production by bringing fallow land into production. It is also to provide land for use through the local level to get rid of the suspicion that it is considered a tenant when renting it out. Although this concept was included in the Land Use Act brought by the government in 2076, the implementation did not move forward as the regulations could not be made.  After the recent Cabinet approved the third amendment to the Land Use Regulations, the land bank has now become operational. It paves the way for landowners to bank their barren, unused or unorganized land according to their wishes and allow others to use it and receive returns from it. 2) How does the land bank come into effect? ​​According to the Land Use Regulations, a land bank will be established at the request of the municipality. A ‘Land Bank Operation Committee’ will be formed for that. The coordinator of this committee will be the concerned mayor or rural municipality chairperson or an executive member designated by him. The committee works as a unit of the local level and the municipality itself determines its rights and responsibilities. The committee will do everything from land registration, record management, investigation, determination of returns to arranging for farmers or interested groups to use it. 3) How does the municipality operate the land bank? To use land through the land bank, the municipality issues a public notice of at least 35 days. The landowner must submit an application stating his ownership proof, plot number, area, and the period for which he wishes to use it. After the investigation, the municipality enters into an agreement with the landowner, also stating the return on the land that is deemed suitable, and lists it. Now, a new application is sought from the person interested in using this listed land. The municipality can issue a permit within 15 days of the application. If there are multiple applications for the same land, priority is given to minorities, marginalized communities, or economically disadvantaged individuals/families. If no applications are received, the municipality can also allow cooperatives, groups, or companies to use the land. The person or group receiving the permission must pay the prescribed fee and use the land in a way that does not affect its original form. 4) Who can benefit from this work?

Landowners get regular income from barren or unused land. Landless farmers or youth get access to arable land. Landowners also benefit as they receive returns throughout the year as per the agreement. Disputes and confusion are reduced as the municipality facilitates. Employment is also expected to increase, the local economy will be dynamic and total agricultural production will increase.

5) Does this practice increase production?

The National Agricultural Census 2078 mentions that barren land has increased by 95 percent in 2078 compared to 2068. After the implementation of the land bank, barren and unused land will come into use. Once the barren land is put into use, production will naturally increase. The barren land becomes cultivable, farmers' access expands and overall production will increase as it can be cultivated in a planned manner.