KATHMADU: Nepal Rastra Bank (NRB) Governor Bishwanath Poudel has called on commercial banks to reassess and redesign their loan packages to ensure effective credit flow.

Speaking at the 29th Annual General Meeting of the Nepal Economic Journalists’ Society (SEJAN) on Monday, Governor Poudel said concerns had been raised from various sectors regarding existing bank loan products.

He said that it is now time for banks to revisit these packages in consultation with industrialists and entrepreneurs.

“Current loan packages have not been designed effectively, resulting in stalled credit flow and accumulation of idle funds in banks,” Poudel said, adding that many bank products currently do not align properly with monetary policy. He also revealed that he plans to meet with bank CEOs next week to discuss these issues.

The governor noted that the effectiveness of existing bank products will be thoroughly reviewed.

He said that the recent flexibility introduced in monetary policy would ease access to loans for entrepreneurs in agriculture, tourism, and other sectors, ensuring that no business faces difficulties due to central bank policies.

On another note, Governor Poudel stated that NRB has granted banks the autonomy to open or close branches within metropolitan areas, believing this will help banks expand profitably and operate efficiently.

This measure was officially announced by NRB on Monday.