5-year financial sector reform strategy comes into force

Kathmandu, Jan 30: A 5-year financial sector development strategy prepared for a robust and inclusive financial system has come into force. The strategy has aimed at contributing to economic prosperity.     

The strategy to be effective from fiscal year, 2082/83 to 2086/87 has the goal of reaching the present financial sector's contribution (6.65 percent) to 7.5 percent in the Gross Domestic Product.     

The document mentions that by the end of the execution year, 60 percent of the total population in the country will have access to insurance. Prepared by the Finance Ministry, the document further advocates the vision of sustainable, inclusive and resilient financial sector so that it would function as a solid foundation for the economic progress.     

Stability, transparency, accountability, and friendliness to technology are other parameters to bring reform in the national finance system.     

Financial literacy, citizen's access and customer protection are included as the major objectives of the strategy. Even the guiding principles have been incorporated in the document to achieve the objectives and pave way for the vision.     

Healthy competition, good governance, stability, complementary roles among public, private and cooperative sectors, safe and optimum use of information technology, strengthening of financial institutions, development of inclusive and environment-friendly financial service, research and development, promotion of innovative practice and customer care.     

The strategy has four pillars- sustainable and inclusive economic development; financial reaches and inclusion; financial literacy and customer care; and strengthening of financial sector and financial stability.     

By the end of the strategy implementation year, agriculture loan to be floated from banking system would be reached to 15 percent of the total loan. The electronic and digital transaction would be increased by three-fold.     

In order for the effective coordination among the oversight agencies, a high-level financial sector reform direction committee would be formed under the coordination of Finance Minister.(RSS)