Kathmandu. According to industry association Morang, the nepal rastra bank’s announcement of monetary policy for the fiscal year 2082/83 and the government’s budget for the fiscal year 2082/83 is a positive aspect of the monetary policy.

Presenting the organization’s stance on the monetary policy, the organization’s president Nanda Kishore Rathi said that the flexible practice adopted in real estate and share loans with the aim of making the market dynamic immediately at a time when the economy is in a shambles is slow.

He said that increasing the limit of loans for construction and purchase of houses, provision of restructuring and rescheduling for loans disbursed to firms÷ and companies related to land development and building construction, increasing the existing single customer loan limit of margin type loans flowing from banks and financial institutions on share mortgage would help address the long-standing slowdown in the sector for the time being. ।

Reducing the bank rate at the upper limit of the interest rate corridor, the deposit collection rate as the lower limit and the policy rate will help increase investment and spending in the economy more likely for industry, business and individual individuals to borrow. However, The Nepal Rastra Bank (NRB) should be alert and cautious in the context of possible capital flight due to the reduction in deposit interest rates.

In the case of agriculture, small and domestic industries, the monetary policy has addressed the issue of revising the current capital loan guidelines based on the nature of the business and the loan repayment-income cycle, but how to address it depends on the implementation aspect.

In the case of other industries and businesses, the Industry Organization Morang should address it in the case of large industries as the monetary policy is silent. Similarly, the main problem of the current market contraction is that the industrialists have not been able to repay the loan and the monetary policy has not been able to address the facility of rescheduling the loan for this.

Similarly, in order to address the impact of the problem of classification of other loans, it is positive to say that the monetary policy will study it and review it as per the need, in view of the suggestion that the loan classification and credit loss arrangement should be done according to the international practice according to the time. The organization hopes that the impact will be seen only from its implementation, so it should be studied and implemented soon.

After the customer updates the details in one bank, the necessary body will also facilitate the development of the infrastructure so that the required body can get the details through electronic means, so it should be implemented immediately as it will be easier to submit all the documents at different times in all the banks and financial institutions when the KYC is updated.

Similarly, the organization has raised the issue of the establishment of asset management company first and although its provision has been made in the last monetary policy, it has not been implemented due to lack of law making.

Although the monetary policy for the fiscal year 2082/82 has included positive aspects, the monetary policy is silent in the context of export-oriented industries and start-ups in the current situation where the overall economy has slowed down.

The organization believes that policy arrangements should be maintained to estimate the issues of long-term importance as the policy does not give importance and sometimes relaxes and sometimes tightens will create confusion in the areas of foreign investment.