NRB Governor Adhikari reflects on economic stability & digital growth in 5-year tenure

KATHMANDU: The Governor of Nepal Rastra Bank, Maha Prasad Adhikari, is nearing the completion of his five-year tenure.

On this occasion, Governor Adhikari held a press conference at the bank’s central office, where he highlighted his achievements in stabilizing the country’s economy amid challenges such as the COVID-19 pandemic, the Russia-Ukraine war, and supply chain disruptions.

He emphasized that his efforts in improving monetary policies have helped maintain economic stability.

Governor Adhikari stated that policy reforms aimed at reducing external pressure have contributed to strengthening the country’s financial stability.

He also mentioned that the country currently holds foreign currency reserves sufficient to cover 14.4 months of imports. By adjusting monetary policies in line with changing circumstances, he successfully kept inflation within the target range.

In response to the impact of the COVID-19 pandemic, Governor Adhikari explained that the central bank had implemented various supportive financial and monetary policies.

Flexible policies were introduced to ease the credit flow for banks and financial institutions, which helped promote business operations, investment, and economic recovery.

To ensure financial stability, the bank strengthened the regulation and supervision of financial institutions and effectively implemented measures for risk mitigation.

The governor also pointed out the significant growth in digital payment systems during his tenure, with a remarkable increase in the use of mobile banking, QR code payments, internet banking, and digital wallets. In fact, electronic payment transactions doubled in the fiscal year 2080/81 compared to 2077/78, contributing to the promotion of digital financial inclusion.

He also highlighted that with the rise in digital transactions, the central bank prioritized cybersecurity, implementing necessary policy and technological reforms. To enhance institutional performance, 116 policy measures were formulated and implemented during his tenure.

In line with international best practices, the bank adopted new regulations and supervisory methods to strengthen the financial system.

The central bank also pursued policies aimed at advancing the digitalization of the banking system, with a special focus on enhancing cybersecurity within financial institutions.

Governor Adhikari expressed confidence that the bank’s reform journey would continue, and that it would continue to implement effective policies contributing to the country’s economic stability and prosperity in the future.

During the event, the Governor also released a book summarizing the major works and achievements of Nepal Rastra Bank during his five-year tenure.