KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has asked Nepal Rastra Bank (NRB) to reduce the Cash Reserve Ratio (CRR) to 4.5 percentage points from the present 5.5 percentage points.

While submitting its recommendation on monitory policy to NRB governor Dipendra Bahadur Kshetri here today, a delegation led by FNCCI president Kush Kumar Joshi urged for mobilising remittance in productive sectors.

Nepal receives Rs 170 billion in remittance, 17 per cent of the GDP.

“The government should issue Development Bond and Citizens’ Bond and encourage people to buy these,” said Joshi told NRB that brings Monetary Policy after the budget every year.

The Monetary Policy should ensure that Small and Cottage industries are charged less interest, importers can import from India by opening Letter of Credit (LC) in dollars, the establishing of Infrascture Development Bank is expedited, the loan repayment period for the hydropower sector is increased to 10-20 years and that banks are allowed to exchange Rs 500 and Rs 1000 Indian currency notes, FNCCI recommended.

It also urged the central bank to revise Negotiable Instrument Act, review the repayment period of bank loans and reduce SLF penalty rate from three per cent to two per cent.

FNCCI also strongly urged the governor to form a high-level committee to deal with wilful defaulters.

Responding to the entrepreneurs. governor Kshetry said that he would take the suggestions positively while bringing Monetary Policy.