KATHMANDU: The Nepal Rastra Bank (NRB) recently unveiled the Monetary Policy for the current fiscal year. Here are the major highlights of the Monetary Policy 2078-79 one needs to know:
1. Repo Rate increased from 3% to 3.5%, keeping Interest Corridor (2% -5%) and SLF Rate 5% unchanged
2. CRR / SLR unchanged
3. Issuance of Debenture of 25% of Paid up Capital will made mandatory for A,B,C and Wholesale Lending D Class Institution
4. 1% Additional Interest on Remittance Deposited in BFIs
5. Agri & SESME lending of 15% each in unchanged. Specific desk will be allocated in Commercial Bank Branch performing Government Transactions
6. DSL Limit Enhancement Related to Self Employment For– Employed individual who lost job due to COVID 15 Lakhs and Hire Purchase for Self Employment up to 25 Lakhs, Women Entrepreneurship and Agri Business 20 Lakhs
7. Watchlist Criteria of 2 Years continuous loss increased to 3 years continuous loss making Business Loanee
8. Lockdown Period Dues – Time Extension up to Poush end 2078 (6 Months)
9. Penal Interest will be waived for highly effected Tourism Sector up to 2079 Ashadh & 1 Years extension for repayment of dues & arrangement of payment in 4 installment (also for COVID impacted SESME)
10. CD Ratio introduced repealing CCD Ratio (90% Maximum CD Ratio)
11. Limit of Consortium Financing increased to 2 Billion from 1 Billion
12. Targeted Sector Lending – Period Extended up to 2079 Ashadh ( Penalty for Poush and Chaitra waived)
13. Infra Loan – Interest Capitalization Auto extension up to 2079 Ashadh
14. COVID Vaccine Producer – Loan at Base Rate
15. Loan Against Share – 4 Crore from one BFIs and total 12 Crore
16.Counter Cyclical Buffer – Waived till 2079 Ashadh end
17. SESME Production based – Base Rate + 2% Maximum
18. Merger of Wholesale Lending and Retail Lending Institution Permitted
19. Base rate formula will be revisited
20. Merger / Acquisition of Commercial Banks – benefits