The business sector has welcomed the government’s new Monetary Policy for 2020-21 announced by Nepal Rastra Bank governor Maha Prasad Adhikari on 17 July.
The policy focuses on reviving the economy from the COVID-19 crisis, and aims to regain the growth target of 7%. Banks will now have to invest 25% of their loans in agriculture and energy. Interest payment on past loans has been extended by six months.
Banks will now be encouraged to merge with other financial institutions. Banks’ CCD ration has also been upped slightly to 85%.