All the office bearers and members including the Acting President of the Federation of Nepalese Small and Household Industries Umesh Prasad Singh warmly welcomed the monetary policy recently presented by the Nepal Rastra Bank and expressed their gratitude to the Governor Maha Prasad Adhikari and the Rashtra Bank family. Due to the friendly monetary policy of small, cottage and medium enterprises and medium enterprises and businessmen, Covid-19 has given hope to the beleaguered entrepreneurs! Commercial banks have set a deadline of July 2081 to increase the investment of loans up to Rs 10 million in small, household and small and medium enterprises to 15%. The provision in the monetary policy stipulates that commercial banks should provide concessional loans of 10 per branch and development banks should provide 5 per branch concessional loans.

Similarly, the outgoing chairman of Mahasaghan, Suresh Pradhan, is confident that the entrepreneurs will be able to work harder to save their livelihood due to the refinancing of 3 to 5%. Commercial banks have given 15%, development banks 20% and finance companies 15% to invest in agriculture and agro-industries till July 2080! Therefore, now there is development and growth of agriculture and agro-aghogis, said Asha Mahasaghanka General Secretary Damwar Prasad Regmi had expressed! Central Treasurer of the Federation Satyanarayana Prajapati had expressed the view that the monetary policy presented by Nepal Rastra Bank is small, domestic and small and medium enterprise friendly as well as bank financial institution friendly.

It has been mentioned that monetary policy also includes policies to increase liquidity in banks to make it easier for banks to manage money for investment. He said that it was positive to increase the loan-to-deposit ratio of banks from 80 to 85%, statutory liquidity ratio to commercial banks, 10% to development banks, 8% to finance companies and 7% to CRR. It is better to make arrangements to provide working capital loan, concessional loan and refinancing to the entrepreneurs who are overwhelmed by the tourism sector, aviation sector, hotels, transportation, restaurants and so on.

Even with such a good monetary policy, if the implementation side is weak, it will be like the elephants come and the elephants come. Therefore, all small and medium enterprises and medium enterprises and bank financial institutions should be vigilant to implement! Satya Narayan Prajapati on behalf of the federation said that Nepal Rastra Bank should also be closely monitoring the situation. On the whole, this time the monetary policy has been welcomed by the emerging business associations!