Photo: TRN NCC President Kamlesh Kumar Agrawal with governor of NRB Dr. Biswo Nath Poudel.
By A Staff Reporter, Kathmandu, June 26: The Nepal Chamber of Commerce (NCC) has presented recommendations to the Nepal Rastra Bank (NRB), urging the central bank to make the upcoming monetary policy more investment, production, and private sector-friendly.
A delegation led by NCC President Kamlesh Kumar Agrawal met governor of NRB Dr. Biswo Nath Poudel and called for a monetary policy that would address problems in the banking and financial sector while creating a more conducive business environment.
The NCC urged the central bank to formulate policies that would enable credit expansion of more than 20 per cent in order to achieve the targeted economic growth rate of 7 per cent.
The Chamber said that the country’s economy has remained sluggish for the past five years, with industries, trade, construction, tourism, and service sectors failing to gain the expected momentum.
It stressed the need for the monetary policy to prioritise the expansion of economic activities and restore confidence in the private sector.
The chamber has demanded for maintaining a permanent single-digit interest rate policy, setting the bank rate at 5 per cent, limiting the spread rate to 3.5 per cent, and immediately scrapping the Working Capital Loan Guidelines to ensure easier access to working capital for businesses.
It has expressed concern that existing anti-money laundering provisions have created unnecessary fear even among entrepreneurs and businesses with legally earned assets.
It urged the government to make the law and its implementation more practical and business-friendly.
The recommendations also called for allowing loan restructuring and rescheduling facilities for businesses facing repayment difficulties instead of immediately blacklisting them.
The Chamber emphasised the need to revive the housing and real estate sector through loan restructuring, rescheduling, and maintaining a loan-to-value ratio of 80 per cent.
The NCC recommended regulating banking service charges, simplifying and digitising banking procedures, ending unnecessary administrative and police intervention in cash transactions, increasing limits on cash deposits, and introducing policies to bring capital circulating in the informal economy into the formal banking system.
During the meeting, NCC President Agrawal said that monetary policy should not be limited solely to maintaining price stability but should also focus on production, investment, employment generation, and economic recovery. He stressed the need for policies that would help restore confidence among private sector investors.
Responding to the delegation, governor Dr. Poudel said that Nepal Rastra Bank remains committed to promoting economic growth, expanding investment, and supporting private sector development.
He said that efforts are underway to remove unnecessary compliance burdens through financial and regulatory reforms.
“We want economic growth. We will continue making necessary policy reforms to support national economic development, expand investment, and create a business-friendly environment. We will make every effort to address legitimate suggestions from the private sector and further facilitate investment and business through financial policies and regulatory arrangements,” he said.
The Rising Nepal
