NRB’s costly policy U-turn:
Political decision-makers and civil society leaders are busy trying to resolve the political problems plaguing the nation.
Taking this as an opportunity, financial decision-makers have also stepped up their activities to impose disputable provisions, and are changing the programmes at will, even the ones which were running smoothly. In this light, the Nepal Rastra Bank (NRB) has changed its decision which required the commercial banks to increase the paid-up capital up to Rs. 1 billion till the end of Ashad, 2066 BS. Because of this, the share prices are tumbling on the stock exchange, which has caused a loss of Rs. 8 billion within days. This has increased the unreliability of institutions which are supposed to be responsible and caused uncertainty in the capital market. The Institute for Development Studies (IfDS) is of the view that NRB should immediately reverse its meaningless decision to bring in a new capital structure. There are no strong reasons which may support a move away from a policy that emphasised the capital adequacy of the commercial banks and financial institutions. The monetary policy of 2063-64, recently issued, has been framed on grounds of excessive flow of liquidity in the economy. But it is a contradiction not to implement, on flimsy grounds, the pre-existing provision of asserting the capital adequacy of commercial banks and financial institutions. This is likely to push up inflation and bring down the deposit interest rate in the days ahead as analysed by the central bank. If this situation persists, it will be natural for the public to raise questions about the competence and honesty of the members of the steering committee of NRB, including its chairperson. We would like to request NRB to immediately enforce the provision regarding the adequacy of capital that was in place just before the latest change. It is the responsibility of the central bank to create stability in the financial sector.
Santosh Adhikary, Institute for Development Studies, Kathmandu
We have made too many concessions to the Maoists. Allowing their militia to merge into the Nepal Army will be the last straw — and a grave mistake, too. The Maoists intend to gain access to the weapons of the Nepal Army through their cadres in the national force. The rebel militia cannot be treated at par with the Nepal Army.
Ramesh Chandra, via e-mail
I enjoyed Biswas Baral’s “The happiness myth” (THT, August 2). But I disagree with his views regarding the happiness of the Nepali people. I believe Nepalis are the happiest people on earth, irrespective of the surveys that place Nepal at the bottom of the happiness ladder. Maybe, as I am a happy person myself I tend to see people around me happy as well.
Sanjita Pun, via e-mail
All the people who have been involved in illegal activities should be brought to book, respective of their ranks. This is the only way to ensure peace and stability in the country. It is possible when real power lies with the people.
R Limboo, via e-mail