Monetary Policy to take more time from unveiling; Reports suggest inclusion of ‘Big Merger’ in the policy

The wait for monetary policy is supposed to be increased for a short time. It has been due time for the unveiling of monetary policy. However, as per an official of Nepal Rastra Bank, the monetary policy will be unveiled only after discussion with the Secretary of Ministry of Finance who is currently accompanying Prime Minister KP Oli in his official visit to China.

As per the reports, the monetary policy is supposed to bring in many huge policies in the banking sector including the provision of ‘Big Merger’. This provision will ensure forceful merger for the financial institutions. As the provision will be on a huge issue, it will only be included in the monetary policy after discussion with the Finance Minister Dr Yubaraj Khatiwada. The reports further suggest that the implementation of this policy will decrease the number of commercial banks by half.

If the discussion with the Finance Minister and Secretary of Ministry of Finance is concluded as per the plans, the number of 28 commercial banks is supposed to decrease to 14/15. The stakeholders have also started to raise their voices in support of the ‘Big Merger’. Many representatives from Banker’s Association, Development Bankers Association along with Businessman Rajendra  Khetan, Banker Sashin Joshi, Suman Joshi have suggested for a big merger in various programmes.