Governor of Nepal Rastra Bank Mr. Maha Prasad Adhikari unveiled the Monetary Policy for fiscal 2021-22 on 13th August with its primary focus on revival of the COVID affected enterprises.
The Monetary Policy has given continuity to the refinancing policies put in place last fiscal to help reduce the brunt of the coronavirus pandemic on industries. Moreover, the banks and financial institutions are now required to maintain the credit-deposit ratio at a maximum of 90 per cent, against the 85 per cent requirement in the Monetary Policy of 2020-21.
The Monetary Policy also addresses the concerns of hospitality, entertainment, and aviation sectors that have been hit hardest by the pandemic. It also pays special attention to the sectors facing liquidity crunch due to the pandemic. The policy has a provision of loans up to Rs 2 lakh for the repair and maintenance of public transport, another sector badly hit by the pandemic.
In the new Monetary Policy, the scope of mobilization of financial resources has also been expanded.
The monetary policy has addressed some of the points addressed by NATTA and has kept a positive impact on post-pandemic economic recovery, entrepreneurship development, and promotion of small- and medium-sized enterprises.
Previously, the letter of suggestions was submitted to Nepal Rastra Bank (NRB), Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Tourism Board (NTB) by NATTA suggesting to address the points to be addressed in the upcoming Monetary Policy 2078/79. To facilitate the process of loans from banks, provide loans to tourism SME’s at concessional interest rates based on their company registration and license for up to 5 years for their smooth business continuity were some of the major recommendations mentioned in the letter.
Also, a virtual interaction aimed at sharing ideas and collecting suggestions for tourism-friendly monetary policy in the Fiscal Year 2078-79, was conducted on July 8 at Nepal Tourism Board (NTB). During the online meet representatives from the Ministry of Tourism, Nepal Rastra Bank, NTB officials including current and former Executive Committee Members, Tourism Association Representatives and Experts from the Private Sector Tourism Industry shared and expressed their views on the need for prioritizing tourism and thus the monetary policy should give priority for the smooth functioning of tourism along with other sectors.