KATHMANDU, July 5 (Xinhua): Nepali government has unveiled the national micro-finance policy intended at enhancing the capacity of the country's microfinance, local newspaper reported Friday.
The policy also planned to establish a separate body to regulate and supervise the microfinance, The Kathmandu Post reported.
So far, there is no authority to regulate the microfinance, and the vacuum has enabled some to run away with depositors' saving, which has discouraged many people to strongly participate in microfinance.
Nepal Rastra Bank, the central bank, initiated measures to set up the regulatory body in the last few years, but it has not borne any fruit.
The aim of the policy is to increase access of microfinance to backward and financially weak families and women for improving employment opportunities.
The policy also entails a provision to set up clear standards to issue loans with or without collateral by identifying deprived families involving them in microfinance.
Various programmes and policies related to poverty alleviation would be incorporated in this policy and run in its coordination, said the policy.
An official said as most of the people in Nepal do not have access to finance, expansion and advance of the microfinance is the best option. "The policy is also required to make microfinance more professional," he said.
The policy also stated that national microfinance development fund would be established to mobilise resources to be received from local and international communities.
To make the microfinance thrive, corporate tax and taxes on deposits would be made flexible, said the policy. It added that it would also unveil a flexible policy for deposit mobilisation by the microfinance, on the basis of their services and share capital. The central bank will monitor and supervise the implementation of this policy.
