Banking outlet mandatory in every local level

Published On: April 8, 2017 12:49 PM NPT

MYAGDI, April 8: Nepal Rastra Bank (NRB) Deputy Governor, Shiva Raj Shrestha, said all the banks' branches will reach out to every local level on a mandatory basis.

At an interactive programme among NRB, Banks and Financial Institutes (BFIs) and service recipients held on Friday by the Myagdi Chamber of Commerce at Beni, Deputy Governor Shrestha said NRB was carrying out homework for establishing at least a single branch of a bank in all the local rungs as the government services will soon percolate to the rural sector once the government restructures the local levels,.

Stating that banks' branches are necessary in every village councils and municipalities to facilitate government's financial transactions, Shrestha spoke of the preparations for new currency policy by focusing on the local levels.

Deputy Governor Shrestha insisted that the banks must invest 20 per cent of its total investment ventures in the productive sector and that NRB has increased monitoring for its implementation.

"The loan disbursement from mid July 2016 to mid January 2017 is seen more in unproductive sector than the productive sector, so we have made approaches for increment of investment in the agricultural, energy and tourism sector," he said.

He also underlined the need for the commercial banks to invest five per cent of the total loan disbursement for the marginalized classes. He added that such loan with affordable interest rates will contribute towards reforming the economic status of the individuals representing the marginalized classes.

At the programme, Garima Bikash Bank CEO Govinda Dhakal and Prabhu Bank's CEO Ashok Sherchan opined that the district's economic progress would be stocked from investment in the agricultural, hydro power and tourism sector. RSS

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