Monetary and Fiscal Policies (2066Q6): Discuss the main features of current monetary policy of Nepal and also examine critically the role played by Nepal Rastra Bank for sustaining monetary and financial stability in Nepal.

Main features of Current Monetary Policy of Nepal

1. Selective Licensing policy
2. Focus to Rural Branch of Commercial Banks
3. Interest fee financial resource to promote the branches of bank and financial institution for district headquarters upto 50 lakhs and outside Rs. 1 crore
4. Liberal foreign exchange management policy – 2500 USD per trip, per passport and 5000 USD whole year
5. Compulsory Reserve Ratio is increased by 1% to commercial banks and 0.5% to development banks
6. Deposit insurance upto 3 lakhs
7. Facility upto 5,000 USD to draw from a/c