The government has appointed economist Vishwanath Paudel as the governor of Nepal Rastra Bank. The meeting of the Council of Ministers held on Tuesday appointed Poudel as the governor. Paudel, who was appointed as the governor, has completed his studies in economics from America.

He was also the former vice-chairman of the National Planning Commission. Recently, the economy and the financial sector are also in a difficult situation. The role of the governor to improve the overall economy is many. Yagya Banjade of Kantipur had a brief conversation with the newly appointed governor Vishwanath Poudel on various issues: In the last parliamentary election, you were a candidate for Congress in Chitwan-1. Now he has been appointed as the governor of an autonomous body like Rashtra Bank. Many have questions about this. What is your response?

Everyone has political opinions. I have not done anything wrong by participating in the elections. If contesting in the elections is taken as a negative thing, we are done. He is going to test his position among the people in the election. Humans are born with caste but ideas and competition are not born. Contested in the election, finished. I carry out the responsibilities that I have been given well. There is no hint of politics in my work. Remember my two things during my five years in office - one is governance based on dialogue and the other is transparency.

But there was a long tussle between the ruling party. What are your priorities for reforming the financial sector in this background?

Firstly, I will enhance the supervisory capacity of Rashtra Bank. I believe that rules should be less and supervision should be more. If there are more rules, there will be a lot of confusion. Banks have some problems. Rashtra Bank is responsible for protecting the savings of citizens and organizations. My focus is on working to protect citizens' savings and stability of the financial sector as a whole by solving problems through supervision.

Rashtra Bank's customers are banks and financial institutions as well as the government. In the policies taken by the state, there is effective coordination with the government and banks and financial institutions so that the policies and directives issued by the National Bank cannot be modified within a week. I do everything through dialogue. It works to strengthen the morale of capital market investors. I want the capital market to contribute to the economy as a whole.

You will have to work in coordination with those who are competing, how have you seen it?

I don't think there was any contest for governor. It is not even that the governor is selected by applying. The government has given responsibility to whoever it sees fit. So I don't know who I was competing with. Competition is over now. It is not always a competition. I don't cheat on anyone. I will move forward with everyone included. Until yesterday, Jo-Jo was an aspirant for the governorship, but now it is over. From tomorrow I am the guardian (leadership) of all. My activities will be accordingly.

You have been appointed as the governor of Rashtra Bank, which is being watched with great interest. At present, the situation of the economy and the financial sector is complicated. How have you taken this challenge?

I am familiar with Rashtra Bank. Many of my students are working there. Even when I was in the Planning Commission, I was closely watching the National Bank. So it is not taken as a problem. The situation is difficult but there is confidence that it will improve. It needs everyone's help.

has been keeping a close eye on the economy and the economic indicators of the country. What is your role in untangling the knot in the economy?

Monetary policy does not lead the economy. The job of monetary policy is to help achieve the goals set by the financial policy. If the policy of the National Bank is in conflict with the policy of the government or the Ministry of Finance, I will correct it immediately. A 'proactive policy' that has a positive impact on the economy as a whole should be created by the Ministry of Finance and I am committed to providing all kinds of support and advice. In the existing policies and regulations issued by the National Bank, there are some complaints not only from industrialists and businessmen but also from the private sector as a whole.

I will sit with them and try to find a solution through dialogue, study and research. I don't shoot like a hip shooter. It's an economy, everyone suffers if they make a common mistake. Don't let that happen.

Banks have not been able to extend credit. Too much fluid has accumulated in the system. The bad loans of the institutions are increasing and the problem is also increasing. How do you improve it?

I have been saying since 2065 that we should bring in a property management company. Now that topic has also come in the policies and programs of the government. The government should take the lead in establishing this company. I will sit down with the banks in the near future and listen to their problems and try to find a solution. I work to improve the health of banks.

In recent years, the Rashtra Bank has been accused of sometimes bringing too loose a policy and sometimes too tight. Due to such policy instability, the trust of stakeholders is lost. Now what policy should the bank bring?

I do not make any decisions without facts and hastily. I am aware that citizens should not pay interest rates from 8% to 14% in a month or two. I issue policy-instructions only through adequate discussion and dialogue with stakeholders.

Looking at history, there is no good coordination between the Ministry of Finance (Minister of Finance) and the National Bank (Governor). This is the reason why the financial policy seems to have turned to one side and the monetary policy to the other. How to improve this situation?

I see this as a conflict of 'ego'. The Ministry of Finance and the National Bank have their own roles and responsibilities. The head of the regulatory body shall work within the existing policies and rules. We are not going to do politics, fight. Therefore, we should proceed through dialogue rather than conflict with all agencies.

Nepal is now on FATF's gray list. You have two years to escape from it. Rashtra Bank also plays an important role in bringing it out of the gray list. How do you work for this?