Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has conducted a half-yearly review of the monetary policy for the current fiscal year. In Tuesday’s review, 8 different topics have been included.

Tourism, information technology and export-oriented industries based on domestic raw materials will also be included in the scope of the sectoral credit limit implemented with the objective of encouraging the expansion of credit to agriculture, energy and micro÷, domestic and small enterprises. In addition, the existing provision requiring banks and financial institutions to maintain a minimum loan ratio in each of such sectors will be amended.

Likewise, the current capital loan guidelines will be amended to allow banks and financial institutions to determine the duration of Permanent Working Capital on the basis of the analysis of the borrower’s cash flow and financial statements.

Likewise, the existing provision of reducing the arrears of working capital loan to less than 10 per cent would be reduced to less than 30 per cent for at least seven consecutive days in a year.

Nepal Rastra Bank (NRB) has decided to charge a minimum of 10 percent interest on the loans issued to enterprises÷businesses displaced due to Mahendra Highway and Mid-Hill Highway expansion and re÷tabulation by Ashad end, 2083.

The limit of non-deliverable forward capital of banks and financial institutions will be increased from 25 percent to 30 percent, and foreign investment in infrastructure development such as data center, cloud computing, robotic lab, AI and other infrastructure will be facilitated. In addition, such projects will be encouraged in the flow of co-financing loans from banks and financial institutions.

Likewise, a strategy would be adopted to further encourage e-payment transactions by reducing the transactions through cheques, the banks and financial institutions would be effectively implemented the existing provision of blacklisting the borrowers who could not repay the loan immediately due to circumstantial reasons and the banks and financial institutions would be able to remove the borrowers from the blacklist for 6 months and recover the arrears if they furnish a valid reason to repay the loan.

Similarly, the works related to the Rastra Bank mentioned in the Second Financial Sector Development Strategy (2082÷83-86÷87) recently approved by the government will be implemented in a phased manner.