Nepal Rastra Bank Unveils Monetary Policy for FY 2082/83, Targets 12% Credit Growth

Kathmandu – Nepal Rastra Bank (NRB) has unveiled the Monetary Policy for Fiscal Year 2082/83. Governor Dr. Bishwanath Paudel, presenting the policy on Thursday, announced that the central bank has set a target to increase credit flow by 12% in the upcoming fiscal year. Similarly, broad money supply is projected to grow by 13%.

Governor Paudel stated that the policy is designed to support the government's goals of achieving 6% economic growth and limiting inflation to 5.5%. The focus of this year’s monetary policy includes liquidity management, balanced interest rates, credit access, and overall financial stability.

Key highlights of the policy include the increase in the share pledge loan limit from NPR 15 crore to NPR 25 crore, reforms in loan classification and profit distribution, promotion of digital payments, and expansion of banking services to underserved areas.

NRB has also indicated plans to revise regulatory frameworks concerning microfinance institutions, cooperatives, and insurance companies in a phased manner to strengthen the financial sector.

• Credit growth target: 12%

• Broad money supply projection: 13%

• Share pledge loan cap raised to NPR 25 crore

• Policy aligned to support 6% GDP growth and 5.5% inflation control

The new monetary policy is expected to send a positive signal to the financial market and boost investor confidence.