Governor Clarifies Point 106 of Monetary Policy 080-81

The Governor of Nepal Rastra Bank has clarified the confusion surrounding point 106 of the monetary policy unveiled today. 

According to point 106 of the monetary policy, the existing risk weightage for the disbursement of share/securities loans, real estate loans, and hire purchase loans is to be reviewed.

Currently, loans up to 25 lakhs flowing into share securities carry a risk weight of 100 percent, while loans above that have a risk weight of 150 percent. The monetary policy declares that this system will be amended, making it more convenient for banks to provide loans on share securities within the 12 crore limit. 

Addressing concerns raised by media personnel at a press conference organized to discussion the monetary policy, Governor Adhikari stated that rather than re-evaluating the risk weightage at 100 per cent and 150 percent, in set margins of Rs. 25 lakhs and in excess of Rs. 25 lakhs, respectively, the threshold amount shall be changed. 

He said, as opposed to risk weightage of 100 per cent for loans of up to Rs. 25 lakhs the loan limit will made to Rs. 50 lakhs under risk weightage of 100 percent. 

"A circular of the Nepal Rastra Bank will be released to further clarify in detail on the matter," Governor Adhikari added.