Ministry of Finance going to decide to make More Effective to the Insurance Sector
Kathmandu. The Ministry of Finance has decided to make the regulation of the insurance sector more effective.
Today,This decision was taken by the financial sector high level coordination committee meeting under the chairmanship of Finance Minister, Dr.Prakash Sharan Mahat.
In the meeting, the overall situation of the financial sector was reviewed. In the meeting, Vice President of National Planning Commission Dr. Min Bahadur Shrestha and Governor Mahaprasad adhikari of Nepal Rashtra Bank and other major regulatory bodies of the financial sector were present.
The meeting has decided 8 points including banks and financial institutions.
- Expediting the process of amending the Nepal Rashtra Bank Act, Bank and Financial Institution Act and Nepal Securities Board Act. To review the existing legal arrangements regarding the establishment of a digital bank.
- Regarding the improvements to be made in relation to reducing the cost of financial intermediation, the relevant agencies will immediately advance the process of formulating policies and procedures.
- To make the activities and regulation of the financial sector, capital market and insurance sector more effective and to work in a coordinated manner. The related organization will carefully advance the work of enhancing the capacity of the regulatory body.
- Review the effectiveness of the subsidized loan program based on the study report.
- To conduct an incentive program to bring in remittances through formal channels.
- Prepare action plan for issuing remittance bond. For this, if necessary, legal action will be taken.
- Effectively mobilize the financial sector by deploying financial instruments in the productive sector. Effective regulation of loan management from microfinance institutions.
- For the implementation of the mentioned decisions, the relevant bodies will prepare an action plan within two weeks and submit it to the next meeting of the committee.