RSP Submits Seven-Point Suggestions for Upcoming Monetary Policy

Rastriya Swatantra Party has submitted seven-point suggestions to Nepal Rastra Bank for the upcoming fiscal year’s monetary policy. The party’s Central Currency and Capital Market Department submitted the suggestions to Nepal Rastra Bank Governor Prof. Dr. Biswanath Paudel. The suggestions focus on improving share-backed loans, increasing liquidity, improving the capital adequacy ratio of financial institutions and expanding credit flow.

RSP has suggested determining different LTV ratios for share-backed loans based on the financial strength of companies and setting the loan limit according to total credit flow. The party has also suggested easing restrictions on banks and financial institutions investing in the capital market, increasing the participation of institutional investors such as the Employees Provident Fund, Social Security Fund, mutual funds and Citizen Investment Trust, and implementing a central KYC platform with integration among banks, Mero Share and brokers. Other suggestions include making the interest rate corridor effective, making interest rates more predictable, allowing capable brokers to issue short-term debentures, providing short-term loans against broker and margin receivables, removing the dividend distribution limit on microfinance institutions, and allowing companies facing CAR pressure to issue right shares based on need and justification.