Kathmandu. KATHMANDU: The Rastriya Swatantra Party (Rastriya Swatantra Party) has given suggestions for the monetary policy. The Central Currency and Capital Markets Department of the Rastriya Janata Party (NRB) has made a seven-point recommendation for the monetary policy for the fiscal year 2083/84.

The list of recommendations included reforms in share mortgage loans and liquidity enhancement, active mobilization of institutional funds, central KYC and digital integration, predictable and investment-friendly interest rates, broker margin trading and new financial instruments, improvement in the dividend limit of microfinance and improvement in the CAR of banks and financial institutions.

As part of the reform and liquidity enhancement, the RSP has suggested determining different LTV ratio on share collateral loans according to the financial strength of the company, determining the limit of share collateral loan on the basis of total credit flow and relaxing the investment restriction imposed in the capital market of banks and financial institutions.

Likewise, the meeting has suggested increasing the market participation of Employees Provident Fund, Social Security Fund, Mutual Fund, Citizen Investment Trust among others to expand institutional investors in the capital market.

Similarly, the committee has also suggested allowing competent brokers to issue short-term bonds and providing short-term loans by considering brokers as margin receivables as collateral and removing the limit imposed on dividend distribution in microfinance financial institutions. Here are the 7-point suggestions of the RSP: