Kathmandu. Nepal Rastra Bank (NRB) Governor Dr Bishwanath Poudel has said that the Nepal Rastra Bank (NRB) should be empowered to make the banks and financial institutions strong and efficient.

He said that the central bank should be given special and decisive powers. Speaking at the Finance Committee meeting of the House of Representatives, Finance Minister Khatiwada stressed the need for a legal basis to take immediate decision for the security of depositors and financial stability.

He said that the draft of amendment to six important laws including Nepal Rastra Bank Act, Bank and Financial Institutions Act, Banking Offense and Punishment Act, Financial Customer Protection and Payment and Settlement Act has been prepared and submitted to the Ministry of Finance.

Stating that Nepal has foreign exchange reserve of over 22 billion dollars, Governor Poudel said that even a general reduction in the US interest rate would cause huge loss. Governor Poudel suggested that the sovereign wealth fund should be established to reduce the risk and go for safe investment options.

According to him, although agricultural loan has increased from Rs 250 billion to Rs 710 billion, its actual utilization needs to be evaluated. He was of the view that the government should move ahead by creating an environment conducive for industrialists and enterprises.

He further said that the monetary policy would be presented in coordination with the government’s budget and fiscal policy.