New Working Committee of Nepal Bankers' Association Hold Meeting With Governor, Give Suggestions on Monetary Policy Review

Newly appointed office bearers and former presidents of the Nepal Bankers' Association held a meeting program with Governor Maha Prasad Adhikari. The program was attended by Deputy Governors, Executive Directors, and other senior officials of NRB and members of the new working committee on behalf of the association.

The newly appointed president of the association, Mr. Anil Kumar Upadhyaya, expressed his commitment to play a role in the financial governance, empowerment, and growth of the association, and hoped to receive guidance from the central bank in the days to come.

In addition, Mr. Upadhyay expressed his heartfelt congratulations and best wishes for a successful tenure as the newly concluded SAARCFINANCE Governors’ Group Meeting has elected Mr. Governor as the Chairman of SAARCFINANCE. He hoped that during the tenure of the Governor, there would be mutual cooperation and understanding between SAARCFINANCE Governors on common issues in the economic and financial sectors.

On the occasion of the meeting, in view of the first quarterly review of the monetary policy, the Chairman presented suggestions on behalf of the association.

Mr. Governor congratulated all the office bearers including the newly elected Chairman and wished them a successful tenure. Referring to the recent high credit growth, the Governor urged the banks to exercise restraint. Assuring that the policy/guidelines to be issued by Nepal Rastra Bank will be discussed with the stakeholders, he also assured that the suggestions submitted for the first quarterly review will be discussed internally and appropriate suggestions will be implemented.

These are the suggestions made by the Nepal Bankers' Association:

(1) Adopting some flexibility on the issues of CD Ratio, Liquidity Ratio, CRR, etc., keeping in view the recent liquidity pressure.

(2) To review the arrangements and formulas of interest rate spread, service fee, and base rate.

(3) To adopt some flexibility in the limits of investment in the directed sector.

(4) To make appropriate arrangements for the issuance of financial instruments like SME Bond, Convertible Debenture, Perpetual Debenture, etc.

(5) To review the interest rate spread provided on refinancing.

(6) To make arrangements for investing in deposits in Indian banks to earn interest.

(7) To make appropriate policy arrangements for the establishment of Fintech companies as subsidiaries in order to encourage digital banking.

(8) If banks provide financial assistance for the promotion of financial literacy and banking, the banks should be allowed to include the expenses under their corporate social responsibility.