Banks, gold and silver traders discuss Nepal Rastra Bank procedures

KATHMANDU: A meeting between commercial banks and gold and silver traders to discuss problems in implementing Nepal Rastra Bank (NRB) procedures took place in Kathmandu on September 29.

The “Bank-Entrepreneur Interaction Programme on the Implementation of Gold and Silver Import and Distribution” was held at the Federation of Nepal Gold Silver Gem and Jewellery Associations (FNGSGJA) Secretariat in Tripureshwor and was chaired by FNGSGJA President Kishan Sunar. The event was organised by FNGSGJA Secretary Keshar Bahadur BK.

Representatives from NRB, the Nepal Bankers’ Association (NBA), FNGSGJA office-bearers and executive committee members, presidents and delegates of affiliated associations, associate members, advisors and experts, and heads of commercial bank departments involved in gold imports attended.

Entrepreneurs raised concerns about procedures for purchasing gold from banks, required documentation and payment arrangements, difficulties during transactions, the limited effectiveness of some bank-mediated purchase arrangements, and a rise in jewellery returns by customers. They also highlighted the impact of fluctuating customs rates and gold prices on market activity and consumer demand.

Bank officials outlined regulatory procedures for sale and distribution, gold price management, documentation, payment and record-keeping, and discussed ways to improve coordination with traders to resolve implementation issues.

Yagya Shrestha, Deputy Director of the Policy Unit at NRB’s Foreign Exchange Management Department, said initiatives will be taken to present the issues and suggestions raised at the meeting to the relevant authorities in a coordinated manner. NBA CEO Anil Sharma pledged to bring the entrepreneurs’ concerns and the interaction’s recommendations before the appropriate bodies and to pursue cooperation among FNGSGJA, banks and regulators.

Advisor Badri Prasad Koirala urged that timely amendments, regular dialogue and stronger collaboration between banks, traders and regulators were needed to make the import and distribution system simpler, more transparent and business-friendly.

The meeting concluded with a call on the government to address the recent slowdown in the gold and silver market, including requests to keep customs duties and other taxes on precious metals as low as possible to remain competitive with neighbouring countries. FNGSGJA First Vice President Dwarika Bisworkarma thanked participants.