Nepal Rastra Bank brings new monetary policy

KATHMANDU: Now, the commoners can visit the money changers nearyby their towns to exchange the gifted money received in the US dollars.

The new monetary policy announced today by the Nepal Rastra bank for the 2013/014 fiscal year has also taken liberal policy in US dollar exchange and transaction as well.

As per the new policy, an individual and organizations could exchange the foreign currencies worth equal to 10,000 US dollars.

The Monetary Policy made public at a press meet organized by the Bank here today is focused on the goal of the recent government budget to achieve 5.5 percent economic growth.

On the occasion, Governor Dr Yubaraj Khatiwada said caution was adopted in the monetary policy not to allow increase of trade deficit and to reduce the price hike.

The monetary policy has been made somewhat flexible as flexible economic policy is to be adopted to achieve higher economic growth rate, he said.

The policy is aimed at achieving targeted economic growth by flowing more loans in productive sectors including agriculture, energy and industry.

The monetary policy has bank interest rate at 8 percent and the compulsory cash ratio for banks and financial institutions is maintained at 5 percent for Class A , 4.5 percent for B and 4 percent for Class C.

Arrangement will be made for 20 percent loan flow in productive sector of the total loans including 12 percent in agriculture and energy until Asar, 2072 BS.

Arrangement will be made for providing zero percent interest rate for up to Rs. 2 million loans from NRB, while opening new branch by Class D micro finance in the districts having less access of micro finance.