Nepal Rastra Bank Governor Bishwanath Paudel stated that banks must take responsibility for safeguarding public assets, highlighting the need to treat the NPR 70 kharba in the banking system as a national economic resource, not just private wealth.
Governor of Nepal Rastra Bank, Bishwanath Paudel, has underscored the critical responsibility of banks to protect the public’s wealth and funds. Speaking at a meeting of the Parliamentary Finance Committee on Thursday, he emphasized that the NPR 70 kharba circulating in the banking system should not be viewed merely as private property but as a key resource for the overall economy.
According to Governor Paudel, this vast financial resource must be protected and made accessible to anyone with sound business ideas and entrepreneurial potential. He further added that individuals with viable projects should have the right to claim this resource in the form of bank credit.
Raising concerns about the nature of banking licenses, Paudel questioned whether such licenses are meant to be perpetual. He noted that if licenses are indeed indefinite, barriers to market entry must be removed to enhance competition. Otherwise, he suggested, the validity of banking licenses should be fixed for a certain term
Governor Paudel also stressed the need to enforce stronger institutional governance in the banking sector. He asserted that access to credit is a fundamental right of the people, and the system must be designed to guarantee that right.
“Most licenses have a time limit, like 30 years for hydropower projects or telecom operations, but banking licenses currently do not,” he said. “We are also not providing easy entry to new banks, which raises questions about the nature of banking licenses.”
Paudel concluded by stating that the NPR 70 kharba within the banking system should be regarded as public goods. He also mentioned that the regulations in the Bank and Financial Institutions Act (BAFIA) were developed in accordance with international standards and affirmed his readiness for further discussion. However, he clarified that the final decision lies with the parliament.
This article was originally published on https://bajarkochirfar.com Translated with the help of AI and reviewed by our editorial team.
