Nepal Rastra Bank's Monetary Policy 2024/25 Highlights:

• Ensure Liquidity and Loan Disbursement: Target economic growth of 6% and ensure sufficient liquidity and loan disbursement to the private sector.

• Control Inflation: Aim to keep inflation at 5%.

• Boost Stock Market: Remove Rs. 20 crore limit on share collateral loans for institutional investors and maintain Rs. 15 crore cap for individual investors.

• Reduce Provisioning Requirement for Banks: Decrease provisioning for good loans from 1.20% to 1.10%.

• Focus on Microfinance Sector: Promote mergers and acquisitions of microfinance institutions and review regulatory framework on interest rates and service charges.

• Support Construction Businesses: Extend loan interest repayment period until the end of Mangsir 2081.

• Credit Expansion: Increase credit expansion target to 12.5%.

• Lower Policy Rates: Reduce policy rates from 5.5% to 5%.

• Support for Private Equity and Venture Capital: Protect PEVC firms from blacklisting.

• Promote AI in Financial Institutions: Encourage AI integration in banking and financial services.

• Maintain Foreign Exchange Reserves: Ensure reserves cover up to 7 months of imports.

• Increase Regulatory Retail Portfolio Limit: Raise limit from Rs. 2 crore to Rs. 2.5 crore.

• Enhance Exchange Facility: Increase limit for foreign currency exchange for travel and expand eligible countries.