In a meeting called by Ministry of Finance to discuss about the existing economic state on Friday, Governor Dr Yuva Raj Khatiwada said that as the deposit collection has been almost nil compared to heavy withdrawals, there are chances that banking system might experience some shortage of cash. [break]
According to an official who attended the meeting, Governor Khatiwada, however, was quick to add that NRB is logistically in perfect position to deal with such situation.
The meeting was attended by Finance Minister Surendra Pandey, governor, finance secretary, revenue secretary, and top level management team of banks, insurance companies, stock exchange and security board.
During the meeting, Minister Pandey asked the financial institution to provide basic services to people during the indefinite strike and urged the banks to at least operate Automated Teller Machines (ATMs). He also urged the banks to keep their operations open during the banking hours as far as possible.
Pandey also said the government would provide the financial institutions with security as per the requirement and added that the government would support tourists since they are being trapped due to the standoff. Minister Pandey also asked the central bank to provide banks with cash in case of shortage.
Sasin Joshi, president of Nepal Bankers´ Association, said the volume of transactions in the banks is only 10-15 percent of the average daily transactions. He further added that operating they were facing difficulty in operating branches outside the capital.
Likewise, Rajan Singh Bhandari, vice-president of Nepal Bankers´ Association, said current security arrangement deployed by banks is not enough to withstand the current threat and demanded the government to activate security patrols for banks.
Tanka Paneru, chairman of Nepal Stock Exchange, admitted that the stock market has remained completely closed during the strike period. “A lot of people and organizations need to actively involve for the operation of stock market. This hasn´t happened throughout the strike period,” he added.
Officers from insurance companies said they were not getting people coming to purchase new policies but were continuously working for the renewal of the policies.
Related story
Lending slows as banks focus on recovery of loans at fiscal yea...
