KATHMANDU, July 17: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari presented the monetary policy for current fiscal year 2020/21 earlier on Friday afternoon.
Monetary policy to be unveiled next week: NRB Governor Adhikari
Major Highlights:
1. Additional relaxations like CRR requirement flexibility and facilities for bank and financial institutions that pursue merger and acquisition.
Provisions will be made for merger and acquisition of those institutions with cross-holding.
2. Loan repayment holiday for borrowers will be extended based on the severity of the impact. Those hit hardest will have time to repay their loans
3. 20 percent loans from refinance funds to be floated directly from Nepal Rastra Bank, 70 percent from commercial banks and 10 percent from other institutions including microfinance.
4. Working Capital loans, refinance fund facility and subsidized loans will be prioritized for aviation, transportation, tourism and other sectors hit hardest by COVIDー19.
5. Provision will be made to allow banks to issue Energy Bonds.
6. Cash Reserve Ratio, Statutory Liquidity Ratio requirements for commercial banks unchanged.
7.Guidelines on bank CEO's salary and board director's allowance will be reviewed and revised.
8. No interbank ATM withdrawal charges
