A high-level Financial Sector Coordination Committee, which is headed by finance minister Barsha Man Pun, on Tuesday held discussions on the possibility of reinstating the branches and even instructed the Nepal Rastra Bank (NRB) to do the needful for restoring formal banking services in rural areas.[break]
“We´ve asked the central bank to submit a clear proposal to this connection in the next meeting of the committee,” a member of the committee said.
Likewise, the committee also instructed the NRB to hold talks with the Indian central bank over problems it was facing in promptly receiving the Indian currency. Though officials at the central bank claim the relationship between NRB and Reserve Bank of India (RBI) has grown stronger in recent years, NRB has been facing problems in purchasing IC from the Indian central bank.
“Though the central bank´s IC reserve is still sound, problems over getting the exchanges on time could impact currency supply in the market in the long run. Hence, the committee instructed the central bank to tackle the problem promptly,” said the source.
Likewise, the committee has also asked the central bank to place large hoardings at major entry points along the Nepal-India border to inform Indian visitors that Indian bank notes of 500 and 1000 denominations are not accepted in Nepal.
Nepal has banned exchange and transactions of Indian bank notes of higher denominations mainly on request of RBI.
The committee on the day also reviewed the present outlook of macro-economy, financial sector and capital market, expressing satisfaction over recent rise in buyers confidence in the housing market.
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