Kathmandu – Nepal Rastra Bank has released the monetary policy for the financial year 2081/82. Governor Mahaprasad Adhikari announced the monetary policy from the new building of Rashtra Bank in Baluwatar. In the monetary policy announced by the Governor of the Central Bank, the direction of prudent flexible monetary policy has been continued to stimulate the economy. “On the basis of the analysis of the situation, the action direction of prudent and flexible monetary policy has been continued to make the economy dynamic, keeping in mind the comfortable price and the external sector situation,” the policy states.
The policy lays emphasis on lending to the productive sector and improving the quality of credit, and has made regulatory arrangements to maintain financial stability. The governor official informed that the monetary policy and the regulatory policy have been aligned to facilitate credit disbursement without adversely affecting macroeconomic stability. Through monetary policy, the National Bank has reduced the bank rate and deposit collection rate. “The bank rate of the upper limit of the interest rate corridor has been maintained from 7 percent to 6.5 percent and the policy rate from 5.5 percent to 5 percent”,
Through monetary policy, the existing 1.20 percent loan loss provision for good loans has been reduced to 1.10 percent. Similarly, the Rastra Bank has said that there will be a necessary review in the arrangements related to risk weighting for the purchase and sale of loans. The monetary policy has increased the existing ‘Regulatory Retail Portfolio’ (RRP) limit to Rs. Increased from two crores to a maximum of Rs. According to the National Bank, 2.5 crores has been fixed.
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