NRB marks 70th anniversary
Kathmandu, Apr. 27
Acting Governor of the
Nepal Rastra Bank (NRB), Dr. Nilam Dhungana Timsina, has said that the
financial and monetary sectors in Nepal are still facing challenges and added
the possibility of external pressure in the economy couldn't be ignored.
"Furthermore, due to the ongoing impact of the Russia-Ukraine war and
the complex global economic and political situation, there looms a risk of
continued external pressure on the economy," she said while speaking at
the programme organised to celebrate the 70th anniversary of the
central bank in Kathmandu on Sunday.
She said that the central bank has been
making sincere efforts to maintain macroeconomic stability amidst the
challenges posed by the global and domestic economic environment.
"It is estimated that the improved
supply system, foreign exchange reserves, and remittances have contributed to
the improvement of economic activities," she said while adding that although
the rate of inflation has been somewhat high, there is an expectation of
improvement in economic activity alongside a gradual reduction in the interest
rate.
Dr. Dhungana
said that to promote access to credit for domestic, small, and medium
enterprises, the limit for the Regulatory Retail Portfolio (RRP) has been
increased from a maximum of Rs. 2 million to a maximum of Rs. 3 million per
borrower.
According to
her, the Nepal Green Finance Taxonomy, announced by the central bank this year
will be used as a guiding framework for issuing green bonds and similar
financial instruments which will make the banking sector more resilient to
manage potential risks.
Likewise, to enhance the efficiency and
innovation of the payment system, a regulatory sandbox related to digital
banking services will be operated with the support of the International Finance
Corporation (IFC). Furthermore, with the support of IFC, the Fintech Strategy
is also being formulated.
Dr. Dhungana also informed that the framework
for operating the Systemically Important Payment System (SIPS) within the
payment system is in the final stages of preparation.
Similarly, for the pilot operation of
Wholesale CBDC (Central Bank Digital Currency), the Use Cases and Design
Characteristics are being finalised, and the development of the NRB wCBDC
Version 1.0.0 system is in its final phase.
With the objective of promoting innovation
and expanding access to financial services through digital payment, a Digital
Finance Innovation Hub will be established within the payment system.
Meanwhile, the NRB has made arrangements
for Nepali citizens going abroad for various purposes to withdraw foreign
currency up to the prescribed limit from their own foreign currency accounts
held with Nepali banks and financial institutions through internet banking,
mobile banking, and Quick Response code via international payment cards issued
by Nepali banks and national-level payment system operators.
"Banking and financial institutions
will be encouraged to hedge foreign currency risk, considering the potential
risks arising from fluctuations in foreign exchange rates. Necessary
arrangements will be made for this in the coming days," said Dr. Dhungana.
The central bank has also made arrangements
to continuously monitor and analyse the activities of various threat actors by
establishing a centralised log management system and using Security Information
and Event Management (SIEM) systems. It is expected to help in identifying
potential cyber-attacks on information technology systems.
Speaking on the occasion, President of
NRB's National Employee Association, Krishna KC expressed dissatisfaction over
the delay in governor appointment.
"We have heard rumours of tens of
millions of rupees to buy the post of the Governor of the central bank. This is
a matter of serious concern," he said and demanded for the earliest
appointment of the Governor.
Published in The Rising Nepal daily on 28 April 2025.
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