MP Lima Adhikari Emphasizes Effective Implementation of Nepal’s Monetary Policy Committee
June 21, Kathmandu – Member of Parliament Lima Adhikari Acharya of the Rastriya Swatantra Party (RSP) has underscored the necessity for Nepal Rastra Bank to effectively implement the concept of the Monetary Policy Committee (MPC).
During a discussion on the upcoming fiscal year’s monetary policy at the Economic Committee meeting under the House of Representatives on Sunday, she highlighted the importance of the MPC in ensuring that monetary policy is more transparent, scientific, and credible.
She pointed out that this mechanism has been adopted by successful central banks worldwide.
Adhikari stressed that the committee, which should include independent external experts and economists, must make decisions regarding monetary policy through a review and voting system. She asserted that this approach would further strengthen policy stability, transparency, and market confidence.
The MP further emphasized that, in line with practices in neighboring India and other international examples, the decisions and detailed proceedings of the MPC meetings should be published on Nepal Rastra Bank’s official website. She believes this would make the decision-making process more accountable and transparent.
“To enhance transparency, scientific rigor, and security in monetary policy, Nepal Rastra Bank must formally implement the MPC model starting this year,” she stated. “With independent external experts and economists included, decisions on monetary instruments through review and voting will improve both policy stability and market credibility, as demonstrated by successful central banks globally.”
Adhikari noted that although the budget has introduced corrective measures addressing both demand and supply sides, stronger provisions within the monetary policy are necessary to make these measures effective.
She emphasized that monetary policy should incorporate market-friendly and people-centric improvements to gain public support and assist in achieving the nation’s economic prosperity objectives.
Adhikari recommended including measures in the monetary policy to restore private sector confidence, facilitate credit flow, improve the interest rate system, and strengthen digital banking security.
She pointed out the need to revisit the current 30 percent loan limit for the direct sector and reform the interest rate determination system in accordance with international practices, responding to concerns raised by the banking sector.
Additionally, she called for a reduction in interbank transfer fees to align with government policies promoting digital payment systems.
Regarding the growing risks of cyber fraud and digital banking threats, Adhikari stressed the necessity for developing a real-time information sharing system between banks and telecommunications service providers.