KATHMANDU: Nepal Rastra Bank (NRB) on Wednesday unveiled the monetary policy for fiscal year 2019/20.

NRB Governor Chiranjivi Nepal unveiled the monetary policy amidst a function held at Hotel Radisson in Kathmandu today. The government has announced to provide ‘bumper’ offer to big mergers of the commercial banks.

Governor Chiranjivi Nepal said that the banks which undergo merger will get a fiscal year of additional time to invest in agriculture, hydroelectricity and tourism sector.

The Monetary Policy has also paved the way for establishing branches of Nepali financial institutions abroad. Unveiling the monetary policy amidst a function held at Hotel Radisson in Kathmandu today, Nepal Rastra Bank (NRB) Governor Chiranjivi Nepal informed that Nepali banks and financial institutions will be allowed to open their branches abroad.

The new policy says that Nepali banks need not have to take prior permission from NRB to open their branches within the country.

Governor Nepal said that those banks and micro finances that choose to be merged in the current fiscal year will be given additional incentives. The NRB has also encouraged online payment system.

Meanwhile, such banks will get a year’s time to make the loan and deposit interest spread rate of not more than 4.4 percent. However, the banks, which do not fall under this category will have a 4 percent interest spread rate.

Governor Chiranjivi Nepal also announced the scheme of ‘interest’ in the deposits of gold and silver. The government has made a mandatory rule to have a PAN number for those receiving a loan above Rs five million.

Earlier, an individual getting a bank loan of more than 10 million was only obliged to have a PAN number. Likewise, the government has granted the cooling period for the big merger. Earlier, there was a cooling period of six months for the Chief Executive Officer (CEO) and Deputy CEO while transferring from one bank to the other.