Current Economic Situation
Growth |
2.28% |
Inflation |
6.28% |
Gross Domestic Savings (% of GDP) |
18.1% |
Gross National Savings |
46% |
GDP/Total Fixed Capital |
28.1% |
GDP/Total Capital Formation |
50.2% |
Exports |
+0.2% |
Imports |
-15.3% |
Trade Deficit |
16.4% |
Remittance |
-3% |
Banking Sector Situation
Deposit growth |
13.3% |
Credit Growth |
10.7% |
Capital Adequacy Ratio |
13.4 % |
Paidup Capital growth |
8.2% |
Non Performing Loan (NPL) |
1.81% |
Target
GDP Growth |
7% |
Inflation |
7% |
FOREX reserves sufficient for |
7 months |
The nominal GDP has been taken as the basis for monetary projection. Given this, the limit for the growth of broad money (M2) has been set at 18%. Further, 20% limit has been set for private sector lending
Operating Target and Instrument
Repo rate |
3% |
SLF (upper bound of IRC) |
5% |
Deposit Collection Rate (lower bound of IRC) |
1% |
CRR |
3% |
SLR (A|B|C) |
10|8|7% |
Bank rate (LOLR) |
5% |
Agriculture Credit
Class-A required to provide minimum 15% of total Credit in agricultural sector |
Loan loss provision of 0.2% and 0.6% to be provided respectively in 1st year and 2nd year for loans provided for farming prescribed fruits. |
Relaxation in loan loss provision for loans in silk, jute and cotton farming sector |
Agricultural Development Bank Limited (ADBL) will be promoted as the Lead Bank
to facilitate credit in agriculture sector
Payment System
Establishment of National Payment Switch |
License of the PSPs that fail to make at least 3,00,000 customers and at least 6,00,000 monthly average transactions by Shrawan may be revoked. |
Corporate Governance and Others
The remuneration and facilities of officers of BFIs shall be reviewed |
Class A,B,C,D can charge service fee up to a maximum of 0.75%, 1%, 1.25% and 1.5%, respectively during sanctioning of loan |
No penalty interest, fee or compensation from the customer if the payment period of capital or interest is extended due to Covid-19 |
Waive off any charges for using the ATM Card of one BFI at the ATM of another |
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Tourism Sector Credit
Priority in providing working capital loan, concessional loan and refinance to the tourism related businesses hit by the COVID-19. |
Class-A to extend at min.15% of total loans to micro, small and medium enterprises (MSMEs) with loan limit up to Rs. 10 million |
Energy Sector Credit
Class-A to provide min. 10% of total Credit in Energy Sector |
Class-A having specialization in energy sector lending will be permitted to issue 'Energy Bond' |
BFIs to extend credit at base rate +1% for a period up to 5yrs to exporting hydropower projects and reservoir-based hydropower projects |
Microfinance
Credit limit for business projects with acceptable collateral low-income individuals will be extended to Rs. 1.5 million |
The max. interest rate on MFIs Credit = 15% |
No more thatn 0.5% service fee sector lending |
Regulation and Supervision
CCD Ratio : 85% |
BFIs can distribute cash dividend to the extent of 30% of net distributable profit |
No Loan loss and risk weight for the loans disbursed in infrastructure related projects. |
Countercyclical buffer has been suspended. |
Risk weight placed on operating, market and overall risks set to 3%, 1% and 3% |
Financial Sector Consolidation
Class-A to be given incentives if they start merger and acquisition process by Asar, 2078: CRR waived by 0.5%, SLR by 1% |
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Miscellaneous
Class-B&C to disburse min. 20% & 15% loan to agriculture, MSMEs, energy and tourism |
Loan to Value (LTV) will be set at 60% for the housing projects that are licensed by the GoN |
LTV ratio (KTM Valley) =40% and LTV ratio (Outside Valley) =50% |
Moratorium, Loan Restructuring and Rescheduling
Working capital loans due in Asar can be renewed by Poush |
Defer the installment and interest payment of loans for |
relatively less up to Poush |
relatively more up to Chaitra |
most affected up to Asar, 2078 |
BFIs can restructure and reschedule loans, which were in performing category in Poush |
Extending grace period to those industries hit by COVID-19 (2yrs for tourist-standard hotels, 1 year for the hard-hit sectors, 9 months for the moderately affected sectors and 6 months for relatively less affected sectors. ) |
MFIs can extend the time for loan installment payment due as of Asar by maximum 6 months |
Foreign Exchange Management
The Limit of Foreign Money Exchange during import as per provisions related to DAP and DAA shall be kept at 50,000 USD |
The limit of Foreign Money Exchange during import from third country via draft or TT 35,000 USD |
The period of the LC for the import: 180 days. |
The due date of issuance of advance payment certificate : 4 months |
Refinance
Refinance facilities up to 5 times of the available fund |
Special refinance for export and sick industry at 1% (Max. Rs. 50 million) |
MSME refinance at 2% (Max. Rs. 1.5 million) |
General refinance at 3% (Max. Rs. 200 million) |
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