Some highlights of Monetary Policy FY 2078/79

Some highlights of Monetary Policy FY 2078/79

Some highlights of Monetary Policy FY 2078/79

1. Inflation rate to be maintained within 6.5% in fiscal year and it was 7.00% in previous year
2. The cash reserve ratio to be maintained by the BFIs has been kept unchanged at 3%. CCD Ratio has been increased from 80% to 90%.( 2079 Ashad)
3. Statutory Liquidity Ratio (SLR) has been kept unchanged at 10% for commercial banks, 8% for development banks and 7% for finance companies
4. The bank rate, applied for the purpose of Lender of Last Resort (LOLR) facility, has been kept unchanged at 5%.
5. The existing Standing Liquidity Facility (SLF) rate as the upper bound of the Interest Rate Corridor has been kept unchanged at 5% and the deposit collection rate as the lower bound has been reduced to 1%. Further, Repo Rate as the policy rate has been reduced to 3% from 3.5%..
6. In the eleven months of FY 2076/77, exports increased by 0.2% to Rs. 88 Billion and imports declined by 15.3% to Rs. 1100.81 Billion. The trade deficit improved by 16.4% while the remittance inflow decreased by 3% to Rs. 774.87 Billion during the review period.
7. According to the preliminary estimate of the Central Bureau of Statistics, the economic growth achieved in the FY 2076/77 was limited to 2.28%. The growth rate of agriculture sector is estimated at 2.6 %, industrial sector at 3.2% and service sector at 2%.
8. In FY 2076/77 the Gross Domestic Savings(% of GDP) was 18.1% whereas the Gross National Savings to be 46.00% and it was 19% and 48.9% respectively in early years
9. B Grade Bank and Finance Company must issue debentures equivalent to minimum 25% of It’s paid up capital.
10.  BFIS must have 15% of loan out of total loan in Small and Medium Enterprises Loan
11. BFIS can only provision it’s loan if Company with continue loss to 3 years and it was 2 years in previous years
12. Loan /EMI/Interest of Ashad 2078 BS can be paid up to Poush 2078 BS
13. Counter Cycle Buffer to be held till 2079 Ashad
14. Borrowers to seek consortium finance from BFIS for loan amounting 2.00 Arab loan in previous year it was Rs.1.00 Arab
15.  A person will get a maximum share loan of only Rs12 Crore.
16. Remittance service providers will also be merged
17. Members of the Bank Board and higher authorities do not have to complete a six-month break period before joining other authorization agencies.
18. Loans up to Rs 2.5 million at 5 percent interest rate to those who become self-employed by purchasing vehicles
19. The principal interest to be paid by the affected business from Corona will be increased for one more year