The Nepal Rastra Bank has kept the provision in share loan mentioned in the monetary policy of the current fiscal year unchanged. Share investors have been accusing the stock market of declining due to this policy, but the monetary policy announced in the quarterly review on August 13 has been continued.
In order to increase the access of small investors by minimizing the credit risk of margin nature in the form of shares from banks and financial institutions, provision was made in the monetary policy to increase the access of small investors to a maximum of Rs 40 million from one financial institution and up to Rs 120 million from the overall financial system. Now the provision of the monetary policy is unchanged.
Similarly, the import of goods has been tightened.
In view of the existing situation of foreign exchange reserves, it has been made mandatory to keep cash margin while opening the letter of credit (LC) for the specified items.
The review states that the existing limits of Document Against Payment and Document Against Acceptance will be reviewed. The arrangement has been made to provide an exchange facility for importing silver only up to the maximum exchange facility of the amount provided while importing through draft telegraphic transfer (TT).
It has been mentioned in the review that the existing arrangements including the interest rate and fees for foreign currency loans will be reviewed.
