NRB Governor Adhikari Highlights Economic Stability Achieved During His Tenure

As Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari nears the end of his five-year term, he has highlighted the Central Bank’s success in maintaining economic and fiscal stability amid significant global and domestic challenges.

Speaking at a press conference held at the NRB central office today, Governor Adhikari stated that the Central Bank effectively navigated the economic disruptions caused by the COVID-19 pandemic, the Russia-Ukraine war, and a global supply crisis by adopting timely and responsive monetary policies.

He emphasized that reforms introduced to reduce external sector pressure during his tenure played a critical role in reinforcing the country’s financial stability. Currently, Nepal’s foreign exchange reserves are sufficient to sustain imports for 14.4 months, he noted, adding that the NRB had managed to keep inflation within target through timely adjustments to monetary policies.

Adhikari said that during the COVID-19 crisis, the NRB implemented various concessional fiscal and monetary measures to soften the economic blow. A flexible credit policy was introduced to support banks and financial institutions in ensuring continued liquidity, which helped stabilize business operations and encourage investment, contributing to the broader economic recovery.

He further underlined that bank regulation and supervision mechanisms were significantly strengthened to safeguard financial stability, with effective risk mitigation strategies put in place. Over the last five years, there has also been notable progress in the digital financial sector. Usage of mobile banking, QR code payments, internet banking, and digital wallets has grown markedly, with electronic transactions more than doubling in the fiscal year 2080/81 compared to 2077/78.

This surge in digital transactions has led to enhanced financial inclusion, supported by NRB’s adoption of technological reforms and strong cybersecurity policies. Adhikari mentioned that 116 policy provisions were introduced to enhance institutional effectiveness and drive performance, aligning Nepal’s regulatory practices with international standards.

As part of his final address, Governor Adhikari also launched a publication detailing the key reforms, programs, and achievements accomplished by the Central Bank over the past five years.