New NRB governor takes charge, prioritises deposit security and improvements in loan policies

KATHMANDU: Newly appointed Governor of Nepal Rastra Bank (NRB), Dr Biswo Nath Poudel, has said that the NRB will prioritise the security of citizens' deposits in banks and financial institutions (BFIs) and improvements in loan policies. He said this while taking charge of office at the NRB Central Office in Baluwatar, Kathmandu today.

Governor Poudel stated that the country's central bank will pursue its work as per the policy of augmenting the government's fiscal policy. He said he would carry out his responsibilities while maintaining the autonomy of the central bank. "Monetary policy helps to ensure the success of whatever is determined by the fiscal policy. Regulation and supervision are another task," he said, adding that instead of making many rules to tighten things up, we need to increase supervisory capacity and, for this, the capacity of the central bank needs to be enhanced.

He also mentioned that the central bank would make decisions only after coordinating with various stakeholders. "Policy making should be based on dialogue. I am not in favour of bringing a proposal on my own and saying let's do this and that. We will proceed ahead after discussing with all the relevant stakeholders," said Governor Poudel.

On the issue of the acceptance of the resignation tendered by the executive director of the central bank, Dr Gunakar Bhatt, Governor Poudel said that this is a matter of internal affairs of the central bank. 

As his first decision immediately after assuming office, the newly appointed Governor has signed the decision related to the printing of Rs 500 and Rs 1000 denomination banknotes.

The new Governor of the country's central bank was administered the oath of office and secrecy by Chief Justice Prakashman Singh Raut today.

Earlier today, the newly appointed NRB Governor also called on Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel at the latter's office. On the occasion, DPM Paudel congratulated the newly appointed Governor and extended best wishes for his successful tenure. Minister Paudel expressed his confidence that Governor Poudel would take important and result-orientated initiatives to address the economic and monetary sector's challenges by ensuring smooth coordination between the fiscal and monetary policy.

Present during the meeting were Minister for Industry, Commerce and Supplies Damodar Bhandari, Finance Secretary Ghanashyam Upadhyay, Revenue Secretary Dinesh Kumar Ghimire and others. They also wished the new NRB Governor a successful tenure.

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