The Governor has instructed to provide loans only after monitoring the disbursement of loans.
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Nepal Rastra Bank Governor Bishwa Poudel has directed to eliminate poverty by increasing financial investment. Governor Poudel, who arrived in Libang, Rolpa on Tuesday to monitor the rural economic situation, made this statement while participating in an interaction program between investors, financial institutions and service recipients.
The program was attended by a significant number of heads and representatives of banks and microfinance institutions in the district. On that occasion, he called on all types of financial institutions to emphasize on achievement-oriented investment.
'Although there is a policy to provide loans to agriculture from small and large financial institutions, its impact has not been seen at the rural level,' he said, 'Invest only after strong monitoring so that it directly affects rural life. When investment is made, a plan should be made to benefit the service recipients and prevent investment from sinking.'
His team, which set out to visit and monitor the eastern hilly region to uplift rural life and understand the situation after the major political change, will also reach the western hilly region via Rukum. He drew attention to banks and microfinance to invest with the aim of reducing poverty and improving living standards. He admitted that the lack of investment in rural areas due to the long armed conflict has had a negative impact on the development here, and said that it is sad that the expected investment growth and achievements have not been achieved even after the peace process.
Governor Poudel expressed regret over banks and microfinance disbursing loans without a business plan. 'There is a policy to give loans only after monitoring, and we should work according to that. But in some places, banks and microfinances were found to be giving loans just to eat, and this is against the economic policy.' During the interaction, some microfinances admitted that the loans invested in Rolpa were used for unproductive purposes. They said that these finance companies have been giving loans without effective monitoring.
Governor Poudel also instructed to give loans only after monitoring. Banks and microfinances have invested more than 4 billion in Rolpa.
He suggested that banks and microfinances should come up with a good proposal before making an investment and invest with support and cooperation. 'Before investing anywhere, monitoring and cooperation should be done. Pay close attention. You should not invest by looking at relatives and for any benefit,' Governor Poudel said. He also instructed those who come up with proposals to disburse loans according to the policy and program.
