Summary: Key Highlights from the 59th Monetary Policy Presented by Nepal Rastra Bank Governor Poudel for FY 2082/83
Fri, Jul 11, 2025 1:50 PM on Highlight News, Economy, National,
Nepal Rastra Bank Governor Prof. Dr. Biswo Nath Poudel today unveiled the 59th monetary policy for Fiscal Year 2082/83 through a live broadcast on television and social media. This policy marks his first major announcement since assuming office.
Key Highlights of the Monetary Policy for FY 2082/83:
1. The foreign exchange limit for Nepali travelers has been increased from USD 2,500 to USD 3,000 per person.
2. Banks and financial institutions are allowed to raise their capital as needed, subject to Nepal Rastra Bank’s approval.
3. The maximum limit for individual margin loans has been raised from Rs. 15 crore to Rs. 25 crore.
4. Banks can lend up to 70% of the average market price or the last 180 days’ average price of shares, whichever is lower.
5. A flexible and accommodative monetary policy stance has been adopted to support the sluggish economy.
6. The policy rate has been reduced from 5% to 4.5%, and the bank rate lowered by 0.5 percentage points to 6%.
7. The deposit collection rate has been reduced from 3% to 2.75%.
8. Private sector credit growth is projected at 12% for the upcoming fiscal year.
9. The government aims for 6% GDP growth and to keep inflation within 5.5%.
10. The home loan limit for first time buyer has been increased to Rs. 3 crore.
11. Banks can now provide housing loans up to 70% of property valuation, increased from the previous 50%.
12. For first-time home construction or purchase, the loan-to-value ratio may be up to 80%.
13. Provisions allowing microfinance institutions to distribute annual dividends exceeding 15% (cash or bonus) will be reviewed.
14. Restrictions on “Class C” national-level finance companies deploying deposits up to 15 times their primary capital will be removed.
15. The limit on non-deliverable forwards based on primary capital by banks and financial institutions will increase from 20% to 25%.
16. The capitalization of interest on loans extended to the energy production sector will be reviewed.
