Kathmandu, April 8
The central bank of Nepal, Nepal Rastra Bank (NRB) authorised to regulate all banks and financial institutions of the country, has been found operating regulatory jobs without written directives.
Officials of commercial banks say they are forced to obey the NRB orders as per the law, but a lack of written statements makes them confused these days.
The central bank’s recent directive to the banks not to issue loans for luxurious imports was also issued orally.
CEOs of the commercial banks say the central bank might have resorted to oral directives to regulate such crucial issues also as it does not want to be held responsible if its ad-hoc decisions made some adverse impact on the country’s economy.
The central bank’s Governor Maha Prasad Adhikari, however, says the medium of the directives does not make any big difference.
“You can’t make all of the directives public as it might have some negative impact,” Adhikari says, “Written or oral, the directives are meant to be implemented.”