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Nepal Rastra Bank (NRB) on Sunday unveiled a new monetary policy, adopting a cautious approach while addressing some of the demands of the private sector.

From the government to the private sector, all were keen to know what policy direction the new monetary policy would take. The central bank through Monetary Policy 2023/24 has tried to cater to their demands. 

The new monetary policy has reduced the risk weightage on margin lending, housing loans, and hire purchase loans. By stating that working capital loan guidelines would be reviewed, the central bank has also tried to address the other major demand of the private sector.

The new monetary arrangement has adopted policies of effective monitoring, regulation, and supervision of large loans, to reduce the over-centralization of loans, and to give priority to small and medium-productive loans. 

In the last fiscal year, the NRB had brought a monetary policy focusing on external sector stability. This time around, the central bank has focused on financial sector stability.

The NRB Governor Maha Prasad Adhikari said that the central bank introduced the issue of increasing monitoring of large and bulk loans by taking into account the misuse of loans taken by large borrowers. Adhikari also said that the central bank is trying to give the main priority to small borrowers.

As per the new monetary policy, the asset quality of commercial banks will be re-evaluated. In addition, guidelines for internal credit risk classification of banks and financial institutions will be formulated and implemented. Even the national-level development banks will have to maintain capital funds as per the Capital Adequacy Framework 2015.

But it has taken a conservative approach when it comes to private-sector credit. The NRB has targeted private sector credit growth to 11.5 percent in FY 2023/24 whereas it was 12.6 percent in FY 2022/23. This means the central bank is still stringent when it comes to credit expansion to the private sector. Despite improvement in the country’s external sector, the central bank has made it clear that risks persist in the country’s financial sector and that the easy availability of credit could again lead to a situation of a surge in imports and depletion of forex reserves.

The central bank has said separate guidelines will be issued to make the supervision of large creditors effective. Given the over-concentration of banks and financial institutions’ (BFIs) credit to certain groups, the monetary policy has said that it would prioritize reducing the concentration of credit by amending the arrangements related to single-customer credit facilities.

The central bank has said that a macro stress testing framework would be implemented to evaluate the quality of assets in the banking sector, to reduce credit risk, and to develop and use supervisory information systems to enhance supervisory capacity.

The NRB has reduced the policy rate, which is the upper point of the interest rate corridor, by keeping the bank rate unchanged through monetary policy. This will contribute to reducing the interest rate.

The NRB has made it clear that the risk weightage of margin loans up to Rs 5m has been reduced from 150 percent to 100 percent. However, the risk weightage of margin loans above Rs 5 million will remain as earlier i.e., 150 percent. Similarly, the NRB has said that the risk weightage of hire purchase loans up to Rs 2.5m has been reduced to 100 percent from earlier 150 percent. The reduction in risk weightage of margin loans, and hire purchase loans is expected to provide relief to stock investors and the automobile sector. 

The central bank has increased the housing loan limit by Rs 5 million. Earlier, it had set a limit of Rs 15m for residential house loans which now has been increased to Rs 20m. Similarly, the risk weighting of loans to those who are constructing residential houses through government-licensed companies has been reduced from 150 percent to 100 percent. 

The NRB has said it is going to restructure the loans of borrowers who are in trouble due to natural disasters or other special circumstances by issuing a ‘Stressed Loan Resolution Framework’. The private sector power producers have been seeking some kind of support from the government after the recent flood damaged more than two dozen hydropower projects. 

With the improvement in the country’s foreign exchange reserves, the central bank increased the limit of international payment amounts. As per the new monetary policy, air service providers can pay up to $100,000  abroad at a time with effect from the new fiscal year. 

The central bank has also increased the foreign exchange limit for Nepalis traveling abroad from existing $1,500 to $2,500. The NRB reduced the foreign exchange limit to $1,500 in Nov 2018. 

Amid increasing instances of unprofessional activities under the guise of agitation against the banks and financial institutions, the NRB in a new monetary policy said that the existing Banking Offense Act will be amended. 

“We have also introduced a monetary policy to increase credit to the productive and private sectors. We have also made loans related to auto, real estate, and stock trading flexible. Overall, monetary policy has adopted flexibility to keep the economy moving,” said Bam Bahadur Mishra, deputy governor of the NRB. 

Banker Manoj Gyawali said that the new monetary policy was not expected to bring about any major policy changes. “It seems that the NRB does not want to be more flexible because the liquidity situation has eased while some of the problems have been resolved through the third quarter review of last year’s monetary policy,” said Gyawali who is Deputy CEO of Nabil Bank.

“It looks like the monetary policy aims to encourage the flow of credit toward the productive sector. While it is also imperative to increase the economic growth rate, there is no demand for credit toward the productive sector to achieve the economic growth target due to the current situation,” said Gyawali.

A man allegedly killed his wife in Mahadev Rural Municipality of Saptari.

Ramrup Khang (35), a drug user, of Akawarpur, Mahadev Rural Municipality killed his wife Parbati Devi Khang (30) by attacking with an iron rod and a lathi, Gajendra Narayan Singh Hospital said.

Her body has been kept at the same hospital for postmortem.

Ramrup's father and mother were also injured in the attack, Ram Charitra Khang said.

He attacked all the family members after they stopped him when he tried to leave the house by taking Rs 16, 000, locals said.

Ramrup, who was on the run after killing his wife, was later caught by the villagers. He has been handed over to the police.

Inspector Pramod Khadka said that preparations are underway to take action against him on the murder charge.

Ramrup’s mother Santoliya Devi Khang (62), who was critically injured in the attack, is being treated at the Rajbiraj-based Chinnamasta Hospital.

The Madhya Bhotekoshi Hydropower Project (102 MW), jointly promoted by Nepal Electricity Authority and its subsidiary Chilime Hydropower Company, is facing yet another delay in its generation date.

Madhya Bhotekosi Jalavidyut Company Ltd has said that it would miss the generation deadline because of the delay in construction of the transmission line due to obstruction by local people. Madhya Bhotekoshi CEO, Ram Gopal Shivakoti, stated that if the situation persists, the generation date will have to be pushed back by another month. The project has encountered several delays due to local obstacles and natural disasters, leading to a revised generation schedule of September. Initially planned for completion by the end of 2022, the project was later given a new deadline of mid-June. Due to the delays, the project cost has escalated by Rs 2.75bn.

While the project’s work is almost complete, the actual generation cannot commence until the transmission line’s construction is completed, according to Shivakoti. Locals have been saying that the company started erecting pylons without reaching an understanding with the locals.

The project office has invited the locals to come to its Kathmandu office to collect compensation for the 15 meters of land on either side of the transmission line's right of way. However, locals are expressing concerns as the notice does not specify whether the compensation is for the entire land or only for partial ownership. A pressure group, led by coordinator Buddha Raj Basnet, is demanding 80 percent compensation if locals are allowed to continue farming activities on the transmission line's right of way, and 100 percent compensation if farming activities are not allowed.

According to local residents, they started the protest after the company started stringing lines on the pylons without informing the 124 affected households. Mayor of Barhabise Municipality, Bal Krishna Basnet, said the company disregarded the previous agreement to prepare standards before distributing compensation for land to be acquired for the transmission line. “Although the project is of national importance, it cannot completely bypass the concerns of local people,” he added.

Presently, the project has designated Wards 5, 6, 7, and 8 as the project-affected area. However, the pressure group is demanding that Wards 3 and 4 should also be declared as project-affected areas. They have stated that they won't let the project proceed until their demands are addressed.

Chinese Communist Party leaders held a meeting with Speaker Devraj Ghimire on Monday.

A team led by Yuan Jiajun, who is also a politburo member and party secretary of Chongqing city held a meeting with Speaker Ghimire this afternoon.

Speaker Ghimire’s Secretariat said that bilateral ties, economy, trade, politics and cultural exchange among other issues were discussed in the meeting.

On the occasion, Speaker Ghimire expressed his gratitude to China for giving high importance to Nepal and paying a high-level visit.

“The high-level visit has been taking place after the visit of President Xi Jinping,” he said, adding, “I believe that the bilateral political visit will help in taking the country towards the path of prosperity.”

Saying that Nepal is a beautiful and attractive country in the world, Speaker Ghimire said that even a small help from China will help Nepal become a prosperous country.

Highlighting that Nepal has been making progress in the stability and development after the promulgation of Constitution, Speaker Ghimire stressed on the transit treaty and the need to develop the Rasuwagadhi-Kerung railway as per the agreement made by the then KP Sharma Oli-led government.

He said that China and Nepal, which are connected by mountains, rivers and religion, culture, have had harmonious relations since prehistoric times.

The visit of Li Zhanshu, chairman of the Standing Committee of the National People’s Congress of China, last year and the visit of National Assembly Chairman Ganesh Prasad Timilsina a month ago have expanded the parliamentary exchanges.

Mentioning that China is the economic power of the world, Speaker Ghimire expressed his happiness for starting a model program to make Nepal a storehouse for food.

Saying that he came to Nepal at the direction of President Xi Jinping, CPC leader Jiajun said that China would help Nepal become self-reliant in food stuff.

He also announced a financial assistance of 8 million Yuan (Rs 140 million) to the Nepal government.

Leader Jiajin also extended an invitation to Speaker Ghimire for the China visit.

The price of gold has dropped by Rs 300 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 112, 000 per tola today. It was traded at Rs 112, 300 per tola on Sunday.

Meanwhile, tejabi gold is being traded at Rs 111, 450 per tola. It was traded at Rs 111, 750.

Similarly, the silver is being traded at Rs 1,460 per tola today.

A woman and her son died after a landslide buried a house at Bhairu Tole in Puchaurdi Municipality-2 of Baitadi.

The deceased have been identified as Anju Gagari (25) and her five-year-old son Rijan Jagari, Inspector Kamal Prasad Chaudhary said.

According to the Area Police Office, Patan Chief Chaudhary, Anju’s mother-in-law Raimati (45) and brother-in-law Gobbar Jagari (17) were injured in the incident.

Similarly, Jasma Bohara (60), a neighbor who came to stay as a guest in the same house, was also injured.

Anju’s husband is in India for employment.

According to locals, the house was completely damaged in the incident.

At least 117 wild animals were found dead in Chitwan National Park in the last fiscal year.

Different 17 types of wildlife were found dead in the national park and Madhyawarti Community Forest.

Information Officer at CNP, Ganesh Prasad Tiwari said that majority of the wildlife was found dead due to natural reasons.

As many as 80 animals died due to natural causes while 26 animals died due to dog bites.

In the period, 55 spotted deer, 22 one-horned rhino, nine ghariyal crocodile, seven antelope and three tigers, Gaurigai and wild buffalo each were found dead in and around the area.

Likewise, elephants, two wild boar, magar crocodile, ratuwa, porcupine, jackal, dhanesh, laguna and leopard were also found in the area, he informed.

According to the CNP data, a total of 142 wild animals were rescued during the period.

The Board of Trustees of the Isa Award for Service to Humanity, chaired by Shaikh Mohammed bin Mubarak Al Khalifa, the special representative of King Hamad bin Isa Al Khalifa, stated that the Isa Award for Service to Humanity reflects the King’s unwavering commitment to supporting humanitarian work. They emphasized that the award was established as a tribute to the late Amir of Bahrain, Shaikh Isa bin Salman Al Khalifa, who devoted his life to serving humanity.

This announcement took place during the opening of nominations for the sixth edition (2023/24) of the Isa Award for Service to Humanity. The award was initially launched by the King in 2009 and aims to honor outstanding individuals and organizations that provide exceptional services to humanity.

In the fifth edition, the award was presented to the esteemed Nepali ophthalmologist, Dr Sanduk Ruit, in recognition of his remarkable contributions to human service through eye treatment.

Ali Abdullah Khalifa, the Secretary General of the Isa Award, highlighted that the Kingdom of Bahrain, through the establishment of this Award, has become a leading supporter of pioneering global initiatives that serve humanity. He further pointed out that the award stands as the first Arab award to globally recognize initiatives dedicated to serving humanity, gaining international recognition and acclaim.

“A jury of experts from around the world will judge the nominees’ work. The winner of the award will be presented with a Royal Certificate of Appreciation, a medal made of pure gold, and $1m at a ceremony in the Kingdom of Bahrain in June 2025,” the Secretary General said.

Nominations will close at the end of Jan 2024.