Kathmandu. Governor Maha Prasad Adhikari has presented the priority of monetary policy in the Finance Committee of the Parliament. In monetary policy, NRB has given first priority to the issue of merging banks and financial institutions.

Stating that it will enhance financial stability, the central bank will further accelerate the mergers and acquisitions being adopted in the fiscal year to reduce the cost of financial intermediation in the monetary policy.

NRB is preparing to finalize the monetary policy for the coming fiscal year. The Bank is going to harmonize with the 15th Plan of the Government of Nepal, Financial Sector Development Strategy, policies and programs and budget of the Fiscal Year 2077/78, and the Third Strategic Plan of the Bank.

The policy aims to manage monetary and credit to help the Government of Nepal achieve its economic growth target through the budget.

Similarly, the policy emphasizes on concentrating financial resources in the areas of promoting domestic production and employment and developing entrepreneurship. It has presented the fact that there is a need to adopt comprehensive prudent regulation measures in the direction of financial facilitation without jeopardizing the stability of prices and external sector.

Reducing cash transactions through digitization has been mentioned as a priority of monetary policy. The policy will pay special attention to the current situation where most of the areas have been affected by COVID 19.

In this regard, the central bank will formulate a policy to move the economy forward in a way that maintains the external sector and financial stability, the bank said.