30 key points from Nepal Rastra Bank’s Monetary Policy for Fiscal Year 2081/82 (2024/25):
Macroeconomic & Monetary Targets 📊
1. Inflation Target: Aims to maintain inflation around **5.0%** .
2. Foreign Exchange Reserves: Maintain reserves to cover at least 7 months of import needs .
3. Economic Growth Support: Target approximately 6% growth, focusing on productive sector lending .
Credit & Liquidity Management
4. Credit Expansion Target: Increase private sector loans by 12.5%, up from 11.5% last year
5. Broad Money Growth: Broad money supply projected at ~12% .
6. **Interest Rate Corridor:**
- Bank rate (upper bound): Reduced from 7.0% to **6.5%** .
- Policy rate (mid-rate): Reduced from 5.5% to **5.0%** .
- Deposit collection rate (lower bound): Kept at **3.0%** .
7. Open Market & Liquidity Tools: Rule‑based OMO kept interbank rates near the policy corridor; standing liquidity facility maintained.
Reserve & Liquidity Ratios
8. CRR & SLR: Cash Reserve Ratio (~4%) and Statutory Liquidity Ratio (~12%) remain unchanged .
9. Permanent Liquidity Facility: Continued access at bank rate under flexible conditions .
10. Liquidity Status (Mid‑Term): By Poush, reserve coverage was ~14.4 months with money supply up 10.2%, and credit up 7.0% .
Credit Quality & Provisioning
11. Loan Provisioning Reduction: Good-loan provisioning requirement lowered from 1.20% to 1.10%, later to **1.0%** .
12. Reclassification of NPLs: Loans that return to performing status after six months of monitoring may be reclassified earlier .
13. Tier-2 Capital Inclusion: Regulatory reserves now count as Tier-2 capital, within set limits .
Sectoral Lending & Limits
14. Regulatory Retail Portfolio Increase: Limit raised from NPR 20 M to 25 M .
15. Working Capital Guidance: Variance analysis guidelines extended until 1 Shrawan 2082 to support business liquidity .
16. MSME Loan Limit Review: Current NPR 10 M cap under review, potentially to be raised.
Capital Market & Investment
17. Margin Lending Cap Removed: Rs 20 crore cap on institutional share‑collateral loans abolished .
18. Individual Investor Cap: Remains unchanged.
19. PE/VC Fund Blacklisting Exemption: PE/VC-backed firms won’t be penalized due to one blacklisted company .
20. Asset Management Company Plan: Draft legislation for AMC to manage non-performing assets initiated .
Microfinance & Cooperative Sector
21. Microfinance Merger Incentives: Mergers & acquisitions encouraged via policy incentives .
22. Consumer Protection: Measures for blocked-depositor recovery up to NPR 500,000 from cooperatives .
23. Interest and Service Charge Review: On microfinance lending rates and fees .
24. Loan Restructuring for MFI Borrowers: Restructuring allowed during unforeseen financial stress .
Real Estate & Construction
25. Vehicle Loan LTV Cap: Capped at 60% for personal and electric vehicles (from mid-term review) .
26. JV Blacklisting Clarification: Blacklisted JV partner won’t affect other partners’ banking operations .
FX, Trade & Tech Sector
27. Forex Measures: Passport-based forex limits increased; TT/import forex raised from $35k→$50k and $60k→$100k .
28. NRB Swap & Derivatives: Framework approved for non‑deliverable forwards, swaps up to 20% of primary capital .
29. Forex Reserve Surplus: Mid-year reserves covered ~14.4 months imports (vs. 7-month target) .
30. Central Bank Digital Currency (CBDC): Feasibility study cited; groundwork reportedly ongoing .
These measures reflect a balance between stimulating growth and maintaining financial stability, with targeted support to capital markets, microfinance, cooperatives, and exchange rate tools.
 – Monetary Policy 2081/83: 30 Key Highlights){kind=link}
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