Banking News – Former President of the Nepal Chamber of Commerce, Rajendra Malla, has said the Monetary Policy for FY 2083/84 is a positive step toward maintaining financial stability and revitalizing economic activity, but stressed that its success will ultimately depend on effective implementation.

Reacting to the newly unveiled monetary policy, Malla said it includes several positive measures that are expected to strengthen the financial system and boost market confidence. However, he noted that the policy falls short of addressing key concerns of the private sector, particularly in reducing the cost of doing business, lowering lending interest rates and overall financing costs, and ensuring effective credit flow to productive sectors.

He also emphasized the need to further expand concessional loan programs for startups and innovative businesses. In addition, Malla called for accelerated digitalization through the implementation of a One Door Know Your Customer (KYC) system, which he said would reduce unnecessary paperwork and procedural delays in the lending process, creating a more business-friendly environment.

Malla said the effectiveness of the monetary policy will depend on its successful implementation and stressed the importance of close coordination among the Government of Nepal, the Nepal Rastra Bank, and the private sector.

He expressed confidence that policy stability, an investment-friendly environment, and stronger private sector confidence would help accelerate investment, production, job creation, and overall economic growth.