Highlights of the Monetary Policy
2070/71
Strengthening Financial
Sector
Increasing
financial access
Directing credit to Productive Sector
1.
Flexible Monetary Policy
to attain the economic growth of 5.5%
2.
Inflation target 8%
3.
Broad Money Growth 16%
4.
Domestic Credit is
projected to increase by 17.1%
Monetary Policy
Instruments:
1.
Bank Rate 8% : No change
2.
Cash reserve ratio
reduced by 1%, A: 5%, B – 4.5% and C: 4%
3.
Statutory liquidity
ratio reduced. A: 12% , B: 9%, C: 8% (Earlier 15%, 11%, 10% respectively)
4.
Repo Maximum Tenure 21
days from 28 days earlier.
5.
Online Bidding System
for TB and DB
6.
Loan term Bond to be
issued.
7.
Base Rate implementation
to other FIs.
8.
Interest rate on
refinancing to agriculture, hydropower reduced to 5pc (Earlier 6pc)
9.
Interest rate on refinancing
to sick industries and exports reduced to 1pc (Earlier 1.5pc)
10.
DSL: A: 4.5%, B: 4%, C:
3.5% (increased by 0.5%)
11.
Compulsory lending to
hydropower, agriculture increased to 12pc
12.
Work plan of B & C
class about productive sector lending within 3 yr to be submitted within 2070
Paush.
13.
New Licensing of A, B, C class still in hold.
14.
Continuity of 0% loan for establishment of new
branch at remote area
15.
Spread rate to be
maintained at 5pc
16.
Guideline on acquisition
to be introduced
17.
BASEL III provision to
be implemented as per need
18.
Deadline for paid-up capital increment
extended by one year (within 2070/71)
19.
Capital to be increased
20.
Supervision of IT
Guideline and System Audit implementation
21.
Establishment of
Infrastructure Development Bank
22.
Basel Core Principle
Self Assessment
23.
Implementation of
Problem Bank Resolution Framework
24.
PCA to be implemented
even for failing to maintain required liquidity
25.
Stress testing required
for finance companies
26.
Provision of dynamic
provisioning
27.
BFIs to be forced to
lower institutional deposits’ share to less than 60pc
28.
Mobilization of deposit
collected at rural area in rural itself (limit to be introduced)
29.
Specialist service for
supervision of Saving and Credit Cooperative having more than Rs. 500million
transaction.
30.
Differentiate Banker and
Industrialist
31.
Assess of Development
bank to Note Chest
