Infra bank to come into operation within a couple of months.

Kathmandu, Apr. 27: Governor of Nepal Rastra Bank Dr.Chiranjibi Nepal said that the infrastructure bank would come into operation within a couple of months.

The bond with Rs. 20 billion will support in the development of large infrastructure projects, said Dr. Nepal at a programme organised to mark the 63^rd anniversary of the central bank on Friday.

The bank is being established almost after a decade since the government said so. It has also been mentioned in various budget statements.

The central bank had issued the 'Licensing Policy for Infrastructure Development Bank 2017' in last August and called the interested parties to apply for the license.

Dr. Nepal said that all the local units in the country will have at least a banking branch by the end of the current fiscal year 2017/18.

"Of the 753 local units, 394 have branches of commercial banks. Banks have pledged to open their branches in 243 local units by May 14, and for the rest of the 116 local units, the NRB has directed the banks to establish their branches within this fiscal year," he said.

He said that the central bank had given permission to a commercial bank to affiliate with the card switch service of the National Payment Corporation of India (NPCI), and issued the letter of intent to 16 companies for online payment service provider.

Former Governor Ganesh BahadurThapa said that only onsite and offsite monitoring were not enough for the safe banking and suggested the NRB applying latest financial technology.

"The NRB should adopt modern management system, coordinate with the crime control agencies and develop a long-term solution mechanism," he said.

He said that the current liquidity crisis was the result of banks' aggressive investment in the non-productive sector to secure higher profits.