Kathmandu. The Banking Sector Reform Advisory Task Force has suggested 4 things to make credit flow effective in rural areas.

Nepal Rastra Bank (NRB) The task force formed under the coordination of Rewat Bahadur Karki has given such a recommendation. The task force has suggested that the governor himself should visit a rural area (mountain, hill and Madhes÷Terai) one day every month to launch the ‘Rastra Bank in the Rural Area’ program and interact with the stakeholders about the economic potential, demand for loan and other services of banks and financial institutions.

Similarly, the task force will appoint a financial guru (a successful businessman, an NRN and a banker) in collaboration with interested municipalities. Such a team has suggested to identify the potential of the rural municipality and other goods and service industries that have heavy value addition and help for its successful operation.

Likewise, each municipality has been recommended to conduct at least one week of entrepreneurship and financial literacy programme every year. The task force has suggested encouraging banks and financial institutions to lay less emphasis on real estate collateral and more emphasis on cash flow.