CIM submits recommendations to NRB for upcoming monetary policy

KATHMANDU: Chamber of Industries Morang (CIM) has submitted 18 recommendations to Nepal Rastra Bank (NRB) for its monetary policy for upcoming fiscal year 2025/26. The proposals aim to ease credit, strengthen industry and modernise banking.

CIM President Nanda Kishor Rathi called for more flexible loan-rescheduling and restructuring rules. He proposed charging only 15% of outstanding interest, classifying restructured debts under micro-surveillance and applying a 5% provision.

To stabilise working capital, CIM urged raising loan limits from 40–50% to 70–80% and extending excess working-capital repayments to 2029. It also wants the 20% cap on limit reductions suspended, the seven-day zero-loan rule removed and the permanent working-capital term extended from 10 to 15 years.

On credit regulation, CIM recommended that NRB allow industries to blacklist habitual defaulters at the Credit Information Centre. It also proposed including debtors’ details in annual audit reports to local revenue offices and doubling trade-loan repayment periods from 90 to 180 days.

The private sector body suggested increasing collateral-based loan-to-value ratios from 50% to 80% and raising debt-service-to-income thresholds. It urged the central bank to establish an Asset Management Company this year.

CIM has asked for provincial business-development centres to support SMEs, startups and cottage industries. It proposed relaxing restrictions on private-equity, venture-capital and angel investments to open new funding channels.

To foster digitalisation, CIM called for an end to paper promissory notes and mandatory fingerprinting. Banks should introduce biometric systems and adopt paperless processes.

Highlighting policy uncertainty, CIM urged NRB to provide forward guidance on regulatory changes and fix loan rates for productive industries for at least five years. It said this would help businesses plan amid fluctuating liquidity and interest rates.

The organisation sought improvements in cheque payments and clearance. It proposed that interest accrue only from the payment date, funds clear on the same day and the non-performing loan threshold be extended from three to six months with reduced risk weights and provisions for new loans to value-adding and agro-processing industries.