Nepal Rastra Bank (NRB) announced its Monetary Policy for FY 2083/84 on 7 July 2026. It is important for banking exams (NRB, Rastriya Banijya Bank, Agricultural Development Bank) as well as the economics section of Lok Sewa papers.
Main Targets
| Indicator | Target / Decision |
|---|---|
| Economic growth supported | 7% (government target) |
| Private sector credit growth | 11% |
| Broad money (M2) growth | 14% |
| Inflation target | Within 5.5% |
| Policy rate | Unchanged |
| Standing Deposit Facility (SDF) rate | Unchanged |
| Bank rate | Unchanged |
| CRR and SLR | Unchanged |
| Overall stance | Cautiously accommodative |
Major Reforms Announced
- Personal guarantee: NRB plans to end the unlimited liability created when a personal guarantee is used as loan collateral.
- Share-backed loans: Limits on loans against shares will be linked to the financial strength of each bank or financial institution.
- Focus: Financial stability, regulatory reform and better banking efficiency.
Economic Background
NRB admitted that demand for credit in the domestic market is still weak, and that some banks and financial institutions are under pressure to maintain capital adequacy. This is why it kept an accommodative stance: it wants lending to recover without risking stability.
Key Terms (Often Asked)
- Monetary policy: The central bank’s policy on money supply, interest rates and credit.
- CRR (Cash Reserve Ratio): The share of deposits banks must keep with the central bank.
- SLR (Statutory Liquidity Ratio): The share of deposits banks must hold in liquid assets such as government securities.
- Policy rate: The central bank’s benchmark interest rate that guides other rates.
- Accommodative stance: A policy that supports borrowing and growth.
Nepal Rastra Bank was established in 2013 BS (1956 AD) under the Nepal Rastra Bank Act, 2012 BS.
Practice MCQs
- When was the Monetary Policy for FY 2083/84 announced?
a) 15 May 2026 b) 29 May 2026 c) 7 July 2026 d) 16 July 2026
Answer: c) 7 July 2026 - What private sector credit growth does the Monetary Policy 2083/84 target?
a) 9% b) 11% c) 12.5% d) 14%
Answer: b) 11% - What happened to the policy rate in the Monetary Policy 2083/84?
a) Increased b) Decreased c) Unchanged d) Abolished
Answer: c) Unchanged - What broad money (M2) growth is projected?
a) 10% b) 12% c) 14% d) 16%
Answer: c) 14% - When was Nepal Rastra Bank established?
a) 2007 BS b) 2013 BS c) 2017 BS d) 2022 BS
Answer: b) 2013 BS
Related Notes
- Banking and Finance notes
- Economics and Planning notes
- Nepal Budget 2083/84 highlights
- Cabinet decisions, September 2026
- All Current Affairs posts
Sources: Spotlight: NRB monetary policy; Global IME Bank: Monetary Policy 2083/84 highlights; Nepal Rastra Bank (official). Last updated: 20 October 2026.
Why this matters for Lok Sewa
- Monetary policy targets are asked in banking exams (NRB, RBB, ADBL) and the economy section of Lok Sewa. See Monetary Policy of Nepal: tools.
- Know the difference between monetary policy (NRB) and fiscal policy (budget).
Quick practice questions
- What is the inflation target in Monetary Policy 2083/84? Answer: Within 5.5%.
- What is the private sector credit growth target? Answer: 11%.