Kathmandu, Apr. 21
Confederation of Banks and
Financial Institutions Nepal (CBFIN) has suggested the government not to raise
the issue of anti-money laundering (AML) and ask any source of income
requirement and tax clearance if any woman deposits up to Rs. 1.5 million in
the banks and financial institutions (BFIs).
"Such sort of fear has already
discouraged them to deposit in financial institutions. It helps to mobilise
hidden financial resources scattered across the country," said the
organisation in a statement on Tuesday.
It also suggested allowing a
non-resident Nepali or foreigner or company to invest half a million dollars
foreign direct investment through merchant banks or capital companies in the
stock market.
"Their lock-in period for 2-3
years can be discussed," reads the statement issued by Bhoj Bahadur Shah,
Spokesperson of the organisation.
The CBFIN demanded to avoid the
approval from the Nepal Rastra Bank or Department of Industry for a FDI of up
to US $5 million. If NRNs could bring $ 1 million in Nepal for investment,
government should not ask for the source of the fund, it said.
It also suggested not to ask for a
source if any Nepali citizen invests in agriculture and other productive
sectors.
Likewise, it demanded the BFIs to
make available of ‘interest-subsidy’ of10 per cent to all the regular borrowers
for all sorts of loans who pay installments till Baishak, 2077, mid-May, 2020.
As
per the CBFIN, 1 per cent interest rate will be reduced
from Baishak by commercial banks for up-to Rs. 10 million loans. Similarly, 1
per cent interest rate will be reduced by development banks for upto Rs. 4
million loans, and 1 per cent by the finance companies for upto Rs. 2 million.
It has also decided to form a task
force to study the impact of COVID-19 and recommend way forward by developing
short term, medium term and long term strategy to revive the economy and submit
to the government and the central bank.
The study team will identify
existing bottlenecks on various sectors of economy, future challenges in the
financial sector and workable recommendations within 2 weeks.
The Chairmen of various financial
institutions have suggested that all private sector organizations and the
financial institutions should work jointly with the government and support to
revive the various sectors of the economy for survival.
"Now
it is time for sacrificing by everyone and work in unison to resolve the crisis
brought by Covid-19 pandemic, and protect our stakeholders for the existence,"
they said.
CBFIN is an association of chairmen
and directors of BFIs. Currently, there are 27 commercial banks, 24 development
banks and 22 finance companies.
Published in The Rising Nepal daily on 22 March 2020. 
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