Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has released its half-yearly review of the current fiscal year.

According to the central bank, the bank rate has been reduced to 5.75 percent and the policy rate to 4.25 percent.

In order to manage the structural liquidity in the banking system, the Nepal Rastra Bank (NRB) has processed liquidity worth Rs 2000 billion time and again in the month of Poush 2082. The broader money supply grew by 5.4 percent in the six months compared to a forecast of a 13 percent increase. Loans to the private sector were expected to grow by 12 percent but only 3.8 percent in the review period.

According to the NRB, various policy provisions have been implemented with the objective of promoting economic activities by maintaining financial stability. Similarly, the limit of personal override loan issued by banks and financial institutions has been increased to Rs 10 million and the limit of loan issued by microfinance institutions has been increased to Rs 1.5 million. In addition, the loan repayment schedule can be modified as per the need of the borrower.

Similarly, the Nepal Rastra Bank (NRB) has revised the cash transaction limit and made it mandatory to make payments of five lakh or more compulsorily through ‘accountable cheque’ or bank account.

According to the NRB, the IT industry has been allowed to invest up to 20,000 US dollars abroad by reducing the risk burden of trust receipt (import) loan, facilitating the loan classification system and amending the bylaws related to foreign investment and foreign debt management. Similarly, the process of bringing in foreign loan and repatriating the amount earned from investment has also been facilitated.