Nepal Rastra Bank issues monetary policy for the upcoming fiscal year 2082/83

The Nepal Rastra Bank (NRB) has announced its monetary policy for the upcoming fiscal year 2082/83 (2025-26). Governor Dr. Biswo Nath Poudel described it as a flexible yet cautious approach, which includes the approval and implementation of a second financial sector strategy.

Key changes in the new policy include:

• Interest Rates: The bank rate has been reduced from 6.5% to 6%, and the policy rate has decreased from 5% to 4.5%.
• Housing Loans: The maximum loan limit for constructing or purchasing private residential homes has increased from NPR 20 million to NPR 30 million. For first-time home buyers, a loan-to-value ratio of up to 80% is permitted, while for others, it’s capped at 70%.
• Share Collateral Loans: The limit for personal share-backed loans has been raised from NPR 150 million to NPR 250 million.
• Foreign Currency for Travelers: Nepalese citizens traveling abroad can now carry up to USD 3,000, an increase from the previous USD 2,500.
• Private Sector Lending: The policy aims to increase private sector loan disbursement by 12% in the coming fiscal year.