Governor Nepal unveils monetary policy; Monetary Policy not as tight as expected for share market

Governor of Nepal Rastra  Dr. Chiranjibi Nepal unveiled the monetary policy today at Hotel Radission. Through monetary policy, Nepal Rastra Bank has increased the limit of the loan in agriculture and energy sector. The loan limited will be extended to 15% from 12% at present. There has been slight strictness in the provision of loan against shares. 50% of 180 days average value or present market value will be provided. (50% of the lower one will be provided). There has been no changes in the Cash reserve ratio (CRR) as well as the statutory liquidity ratio (SLR). The paid up capital of Wholesale Microfinance needs to  hike to 60 crore within asar 2075. There are only 3 wholesale microfinance in Nepal and they are Rural Microfinance Development Center Limited (RMDC),  Sana Kisan Bikas Bank Limited (SKBBL) and First Microfinance Development Bank Nepal (FMDBL). The spread rate of Microfinance company to be limited to 7%. Time Extension has not been provided to Banks and Financial Institutions to meet the paid up capital requirement set by Nepal Rastra Bank. Please Click here to view full Monetary Policy Report