KATHMANDU: Governor Biswo Nath Poudel presented the monetary policy for the upcoming fiscal year 2026/27 on Tuesday.

The four-page monetary policy focuses on monetary stability and banking reforms.

Governor Poudel released the monetary policy for FY 2026/27 with the primary objective of maintaining overall monetary stability.

The issued policy particularly aims to bring institutional reforms in banks and financial institutions, reduce the cost of capital mobilization, and seamlessly pass on the resulting savings to borrowers.

Governor Poudel stated that the plan includes reclassifying banks according to the size and nature of their business to provide specialized banking services, offering flexibility in branch expansion and operations, and cutting costs through digital banking.

According to Governor Poudel, the new monetary policy has also proposed significant changes in the area of loan management this time.

It mentions that regulations on taking personal guarantees from corporate borrowers will be tightened, eliminating the old practice that created unlimited liabilities.

Governor Poudel further stated that the monetary policy has given continuity to the current bank rate, policy rate, deposit collection rate, mandatory cash reserve (CRR), and statutory liquidity ratio (SLR).

Additionally, a strategy has been adopted to minimize the number of blacklisted entities and effectively manage non-performing loans (NPLs) in sick industries.

Similarly, policies have been implemented to expand financial inclusion, develop digital payment systems, and strengthen risk management.