Private Sector Submits Suggestions to NRB for Monetary Policy Preparation for FY 2080-81

The private sector has submitted detailed suggestions to the Nepal Rastra Bank (NRB) regarding the formulation of an appropriate monetary policy for the upcoming financial year 2080-81, aiming to address the concerns of the struggling economy.

In a joint proposal presented by the Nepal Chamber of Commerce (NCC), Confederation of Nepalese Industries (CNI), and Federation of Nepalese Chamber of Commerce & Industries (FNCCI), the private sector has recommended various changes and strategies at the policy level for NRB to consider. These suggestions focus on managing liquidity, ensuring stability in interest rates, promoting the private sector, facilitating capital asset loans, and improving processes and management practices to enhance the ease of doing business.

The collective recommendations put forth by the private sector include a request to reduce the required net liquid assets by 5%, from the current 20% to 15%. They also propose restructuring and re-tabulation of loans for production industries, with flexibility in provisioning to ensure sustainability. Furthermore, they suggest re-evaluating the existing 90-day limit within the NTA and the establishment of an International Online Gateway Payment System and Borderless Banking Policy.

Earlier, the NRB had invited suggestions and recommendations from various stakeholders in the preparation of the monetary policy, with a deadline set until Ashad 10 at the Department of Economic Research. It is anticipated that the NRB will draft the Monetary Policy for the fiscal year 2080 by the first week of Shrawan.