Kathmandu. Nepal Rastra Bank (NRB) banker Manoj Gyawali has said that the monetary policy for the fiscal year 2082-83 HAS addressed many issues expected.
Governor Dr. Commenting on the main provisions of the monetary policy unveiled by Bishwanath Poudel on Friday, Gyawali said, “Overall, the objective and direction of this monetary policy seems positive. “Monetary policy has addressed a lot of things that were expected and seems to have touched on some things,” he said. Some things can also be addressed by the Rastra Bank through directives as per the needs of the coming days.
Gyawali has also briefly commented on the provisions of the policy and its impact by incorporating the main issues covered in the monetary policy into 22 points:
The bank rate as
the upper limit of the interest rate corridor has been reduced from 6.5 percent to 6.0 percent and the deposit collection rate as the lower limit of the interest rate corridor has been reduced from 3.0 percent to 2.75 percent. The policy rate has been reduced from 5.0 percent to 4.5 percent.
Effect: Deposit interest rates can go down by up to 0.25 percent. Similarly, the interest income earned by banks and financial institutions by keeping more liquidity in nepal rastra bank deposits will decrease.
2. The loan limit for construction and purchase of residential houses will be increased from Rs 2 crore to Rs 3 crore. At the time of construction and purchase of the first house, arrangements will be made to maintain the loan price ratio up to a maximum of 80 percent for the flow of such loan and a maximum of 70 percent in the case of others.
Impact: This will help boost the real estate sector in the real estate sector by increasing both the limit of residential home loans and the loan ratio.
3. Current capital loan guidance will be revised as per the need based on the nature of businesses of agriculture, small and cottage industries, education, health, sports, communications and media houses, and the loan repayment-income cycle.
Impact: The nature of the current capital loan will be modified according to the nature of the business and this will remove the difficulties of guiding the current capital loans that the entrepreneur has repeatedly raised and make it easier for the banks and businessmen to comply with this guidance. ।
4. Classification of existing loans and loan loss arrangements will be studied and reviewed as per the need.
Impact: Bankers’ credit classification and credit loss arrangement are expected to be revised according to the timely and international practice, which is expected to reduce the loan loss regime and increase the profitability of banks and financial institutions.
5. Rs. Arrangements will be made to include loans up to Rs 30 million in the loans disbursed to small and medium enterprises and count them in the loans disbursed in the specified sectors.
impact: This will make it easier for banks to provide loans to the directed sector , and banks will not have to pay a penalty.
6. Provisions relating to interest capitalization of loans disbursed in the energy generation sector will be reviewed.
Impact: The energy sector seems to be facilitated in interest capitalization. As a result, the interest capitalization during the construction period will facilitate the payment of loans to the entrepreneurs engaged in the energy sector.
7. The existing single customer loan limit for margin nature loans disbursed by banks and financial institutions on share collateral will be increased from Rs 15 crore to Rs 25 crore.
Effect: This increases margin-type debt and increases the demand for shares in the stock market. In this way, due to the increase in demand, it is likely to have a positive impact on the stock market and the share price will increase.
8. Policy facilitation will be made in the existing system of blacklisting for cheque dishonour.
Impact: As the number of blacklisted people for various reasons reaches 100,000 and most of them are entrepreneurs, it is expected that the businessmen should be blacklisted or instructed to make it easier to get out of the blacklist. As a result, the demand for credit may increase slightly in the market as businesses continue their business or do more business.
9. Necessar
y facilitation will be made for restructuring and rescheduling for loans disbursed to firms÷ and companies related to land development and building construction registered with agencies approved by the Government of Nepal.
Impact: Due to lack of demand in the real estate sector for three to four years, real estate entrepreneurs are in trouble as well as loans cannot be repaid and in the absence of restructuring or rescheduling, the loan will turn into a bad class. ।
10. The limit on which national-level finance companies of category C can mobilize deposits up to 15 times the primary capital will be removed.
Effect: This limit has been removed as the limit for mobilizing deposits is not necessary when capital related instructions have been issued equally to finance companies.
11. Provision will be made that the amount of regulatory reserve created for non-banking assets can be counted in supplementary capital for two years after the bank and financial institution accepts it.
Impact: This will have a positive impact on the bank’s supplementary capital, increasing the capital fund ratio of banks and financial institutions, thereby increasing the ability of banks to do business.
12. In order to facilitate the increase in capital of banks and financial institutions, arrangements will be made to increase the capital as per the requirement with the approval of this bank.
Impact: As banks and financial institutions are not in a position to do much business due to the capital fund, the monetary policy, which is required to meet the economic growth rate of 6%, can add capital as per the policy to add capital as per the need to support the credit growth of 12%.. Its impact is going to be positive in the stock market.
13. The base rate calculation method of banks and financial institutions will be improved and made more realistic.
Impact: Banks and financial institutions do not have all operating expenses at the base rate and there is no return on assets, so the bank is in a position to lose by giving loans at the base rate. Therefore, if the base rate is fixed by adding at least operating expenses and minimum return, it is expected that there will be a slight increase in the return of investment due to positive impact on the profit of banks and financial institutions.
14. According to the government’s budget statement for the fiscal year 2082÷83 BS, legal and procedural arrangements will be put forward for the establishment of ‘Neo Bank’ to expand financial access.
Impact: Such banks will be established when the basic procedures and arrangements have been made for the establishment of neo bank and when the basic procedures and arrangements have been made for the establishment of neo bank through digital banking, such banks will be established and customers will be expected to get accessible and affordable services through digital banking. it is done.
15. The existing branch expansion policy of banks and financial institutions will be reviewed in the context of strengthening the electronic payment system.
Impact: Commercial bank branches have access to all local bodies in the country. And in urban areas, when the cost of the banking sector is only increasing with the establishment of branches of more banks and financial institutions than required, it creates a situation for the establishment of more branches in the areas where there is no access and the merger of branches with each other where there are more branches. And this will have a positive impact on the entire Banking sector.
16. A detailed study will be conducted to review the classification and working style of banks and financial institutions.
Effect: If the classification and scope of the bank can be restructured at a time when the banking transactions and services provided by the banks and financial institutions of class B and C are the same, then the service facilities provided by the banks and financial institutions and every class can be guided on the basis of the type of loan, then it will benefit all the customers and financial institutions. It appears.
17. According to the existing arrangement, the existing arrangement regarding distribution of more than 15 percent dividend (cash or bonus) annually by microfinance financial institutions will be reviewed.
Impact: The provision that microfinance institutions with good profits can give more than 15% profit can benefit the shareholders of microfinance institutions that have made good profits and will also have a positive impact on the market value of such institutions.
18. Loans up to Rs 3 00,000 disbursed to the youth going for foreign employment with or without collateral can be counted as loans of the poor. In the case of women, such loans are maximum Rs. 5 lakh will be done.
Effect: This will provide relief to ordinary citizens who have to go abroad with personal loans at high interest rates if they are unable to manage even a small amount of money. And due to the certainty of the source of repayment of loans given to the citizens going for foreign employment, there is less possibility of microfinance loans being bad. On the one hand, it will save the citizens from high interest rates and on the other hand, it will also help reduce the bad loans of microfinance.
19. The limit of 20 per cent of the primary capital maintained in the nondeliverable forward maintained by banks and financial institutions will be increased to 25 per cent.
Impact of
: This will result in a non-deliverable forward of about Rs 35 billion and reduce the liquidity of the market to be absorbed by the Nepal Rastra Bank. Banks will also earn more than the interest rate. This will have a positive impact on the profitability of Nepal Rastra Bank and banks.
21. It will be facilitated to obtain customer identification details of banks and financial institutions and other financial service providers through national identity cards. After the customer updates the details in one of the banks, the development of the infrastructure that the necessary bodies can get through electronic means will also be facilitated.
Effect: When the account of the same person is operating in different banks and financial institutions, the cumbersome process of updating the KYC by submitting all the documents documents at different times in all the banks and financial institutions. will be.
22. Arrangements will be made for banks and financial institutions to invest in debentures issued by the agencies established for the purpose of investing in the infrastructure sector designated by the Government of Nepal to raise financial resources.
Impact: Organizations established with the objective of investing in the infrastructure sector designated by the Government of Nepal will easily get resources for infrastructure development. Banks and financial institutions will get more means of investing more liquidity they have. As a result, on the one hand, infrastructure will be developed and on the other hand, there will be a slight improvement in the interest income of banks and financial institutions.
Overall
, this monetary policy seems to have been made public with the aim of addressing banking problems and liberal towards entrepreneurs, the real impact of some policy measures can be assessed only after the directives to be made public after further study by the Nepal Rastra Bank.
