Tendency to take agricultural loan and spend on marriage should be stopped: Governor Poudel

लगानी न्यूज

६ चैत्र २०८२, शुक्रबार १७:०२March 20, 2026

. KATHMANDU: Nepal Rastra Bank (NRB) Governor Bishwanath Poudel has said that the loan going to the agriculture and small and medium enterprises (SME) sector has not been properly utilized. Speaking at a program organized by Society of Economic Journalists of Nepal (SEJON) here today, Governor Poudel said that the tendency of taking agricultural loan to spend beyond the real purpose has increased and the banks and financial institutions should be responsible to stop it.

He said that there is a need for an effective system to check whether the buffaloes have actually been purchased while issuing agricultural loans.TAG_OPEN_div_14 “The tendency to take loans to buy buffaloes but spend them on weddings should be stopped,” he said, adding that the CEOs and managers of the banks should strictly monitor where the loans are being used. ’

Governor Poudel said that discipline and transparency were essential in the banking sector and the management level should be active to ensure the utilization of loans.TAG_OPEN_div_12 Similarly, he said that Nepal Rastra Bank would adopt a policy focused on technology in the coming days. He said that initiatives would be taken through subsidiaries to increase investment in the IT sector and the digitization of the financial sector would be prioritized.

{{TAG_OPEN_div_10} Regarding the expansion of bank branches, he said that the reduction of some branches in the metropolitan area has reduced the operating cost and this has had a positive impact on the profit. Giving an example of the branch which used to serve 150 people before, it now serves only 20-25 people, he pointed out the need of increasing efficiency. Governor Poudel advised the banks to focus on the development of the overall economy and not only profit-oriented. “We need to create a conducive environment not only for the shareholders but also for the investors and service recipients,” he said.

Stating that there is liquidity of around TAG_OPEN_div_8 Rs 900 billion in the banking system at present, he stressed the need to invest this amount in productive sectors. He said that the fiscal policy should also be revised accordingly.