The bankers have suggested the Nepal Rastra Bank to bring a policy for investment more credit in the productive sector in the forthcoming monetary policy.
The bankers have given such suggestions to the National Bank at an interaction program organized in Kathmandu to collect suggestions for the upcoming monetary policy. All the bankers, on the suggestion of monetary policy, stressed on the need to build a self-reliant economy by giving priority to the credit effect in the manufacturing sector.
Speaking on the occasion, Chairman of the Nepal Bankers Association and Chief Executive Officer of the Agriculture Development Bank, Anil Upadhyaya, suggested a monetary policy to increase investment in the productive sector. He said that the economy would improve only if production could be increased by increasing investment in the agricultural sector.
Upadhyaya said that remittances coming to Nepal are far from the banking system and should be brought into the banking system. Chairman Upadhyaya said that banks would be encouraged if the risk burden was reduced by separating productive and unproductive sectors.
He said that the risk burden should be differentiated in the manufacturing sector. He suggested that the base rate imposed on banks was not practical and should be improved through monetary policy.