The objective of the paper is to examine the status of financial inclusion in Nepal. The study is based on secondary data to analyse the financial inclusion led by banks and financial institutions and 'D class' micro-finance institutions. The status of financial inclusion in Nepal is not satisfactory and majority of people have still no bank accounts at the formal financial institutions. The financial inclusion led by banks and financial institutions as well as 'D class' MFIs shows that farwestern and mid-western development region has poor penetration of formal financial services as compared to other development region due to complex geographical location and lack of basic infrastructure. MF industry is necessary to develop as a tool of inclusive financial market through the wider expansion of its services in remote rural and hilly areas of Nepal. The government should provide enough supports to develop financial infrastructure, sound MF policies, strengthening regulatory authority, and inclusive economic growth that will help to build-up inclusive financial environment in the nation.