Nepal Rastra Bank’s monetary policy for FY 2082/83 is focused on maintaining economic stability, enhancing financial access, and supporting business growth amid a recovering economy. The policy emphasizes liquidity management, credit expansion, and strengthening the financial sector.

1. Policy Objectives and Direction

• Support economic growth through improved credit flow.

• Maintain price stability by controlling inflation.

• Improve access to finance, especially through digital banking and inclusion.

• Prioritize credit towards productive sectors like MSMEs, energy, agriculture, and infrastructure.

2. Monetary Instruments Adjusted

• Policy Rate reduced: 5.0% → 4.5%

• Interest Rate Corridor:

  • Upper Bound (Bank Rate): 6.5% → 6.0%

  • Lower Bound (Deposit Collection Rate): 3.0% → 2.75%

🔹 Impact: Reduced interest rates encourage credit expansion, reduce deposit interest earnings, and boost liquidity in the market.

3. Sectoral Reforms and Facilitation

🔸 Real Estate Sector

• Home loan ceiling increased to NPR 30 million (for first home).

• Support for restructuring and rescheduling of real estate loans.
  🔹 Impact: Revival of the real estate sector; support for borrowers and banks managing stressed loans.

🔸 Energy Sector

• Review of interest capitalization during project construction phases.
  🔹 Impact: Easier loan servicing for energy investors during construction periods.

🔸 Capital Market

• Margin loan limit increased from NPR 150 million to NPR 250 million.

• Dividend distribution rules relaxed for microfinance institutions.
  🔹 Impact: Increased liquidity and demand in the stock market, possibly boosting share prices.

4. MSMEs, Microfinance & Foreign Employment

• Loans up to NPR 30 million counted as MSME sector loans.

• Loans up to NPR 300,000 (male) / NPR 500,000 (female) for foreign employment classified under deprived sector.

• Microfinance institutions allowed to distribute more than 15% dividends under review.
  🔹 Impact: Easier access to finance for small businesses, rural households, and returnee migrants.

5. Financial Sector Reforms

• Capital Augmentation: Facilitated via rights shares and other means.

• Non-banking assets allowed as part of Tier II capital for two years.

• Base Rate Calculation Method Revised: To reflect true cost and minimum return.

• NDF (Non-Deliverable Forward) exposure limit increased from 20% to 25%.
  🔹 Impact: Stronger capital base and profitability of banks; fairer loan pricing.

6. Digital Banking and Access Expansion

• Neo-bank framework initiated for digital-only banks.

• Unified KYC System: KYC updates at one institution can be shared across others digitally.

• Branch Expansion Policy Reviewed: Promote need-based branches; control cost.
  🔹 Impact: Improved financial inclusion, reduced banking costs, and customer convenience.

7. Infrastructure Investment Support

• Banks allowed to invest in government-approved infrastructure debentures.
  🔹 Impact: Easier funding for infrastructure projects; productive use of excess liquidity.

✅ Conclusion:

The 2082/83 monetary policy is balanced, pragmatic, and growth-oriented. It targets:

• Supporting key sectors: real estate, energy, MSMEs, and capital markets.

• Strengthening the financial sector's capital base and profitability.

• Expanding digital and inclusive banking.

• Making Nepal’s banking sector more resilient, efficient, and aligned with global practices.

While some measures will have immediate effects, others will depend on further directives and implementation. Overall, the policy presents a positive and responsive approach to the current economic needs of the country.