Himal Press 
Finance Minister Bishnu Prasad Paudel
KATHMANDU: Minister for Finance Bishnu Paudel has emphasized the need to conclude deliberations on the Bill to Amend Bank and Financial Institutions Act (BAFIA), 2016.
“Let’s pass the BAFIA Bill soon. This does not mean making decisions in haste, but we must move forward,” Paudel said in the meeting of the Finance Committee of the House of Representatives on Friday.
He added that the Ministry of Finance is prepared to extend all necessary support to finalize the bill without delay.
The meeting also discussed amendment proposals put forward by lawmakers Devendra Paudel and Amaresh Kumar Singh on the Bill. While Paudel has called for a credit policy that facilitates investment, Singh proposed several changes like separating bankers from businesspersons to eliminate conflict of interest, prioritizing loans to productive sectors, curbing the dominance of a few business houses in loan access, ensuring easier access to credit for the general public, and bringing cryptocurrency transactions under legal regulation.
Participating in the discussion, Nepal Rastra Bank (NRB) Executive Director Guru Prasad Paudel told the committee that loans worth approximately Rs 5,600 billion have been disbursed to 1.96 million borrowers. He added that the banking system currently holds around Rs 7,000 billion in deposits. “The central bank has prioritized lending to sectors like agriculture, energy, and small and medium enterprises. We also have programs to increase concessional loans to farmers and women,” he added.
The Bill was registered in Parliament in March last year. Key provisions in the Bill include granting legal recognition to digital currency and digital banking, clarifying the responsibilities of bank board members, and discouraging the practice of board members obtaining large loans from banks in which they hold shares.
It also aims to strengthen legal provisions for effective management and regulation of banks and financial institutions in line with evolving national and international financial systems, financial instruments, security frameworks and risk management standards.
