Kathmandu. Nepal Rastra Governor Dr. KATHMANDU — Bishwanath Poudel has insisted on the need of a new approach for the second phase of financial sector reforms. Speaking at an event organized by the Pre-Planner Forum Nepal in Lalitpur, he said that digital and payment systems are becoming stronger as an alternative to the traditional banking system. 

He said that in the changing global environment, the banking sector is facing various challenges. Governor Poudel noted that the popularity of ‘unchained payment’ is increasing with the rise of Bitcoin and other cryptocurrencies in the United States and other cryptocurrencies in recent times. 

Clearance and intermediation are now being done by alternative technologies, he said. Governor Poudel said that many things have come out in the alternative to the work being done by the bank as an intermedia ry agency {{} and this has added new challenges to the banking sector .

To address these challenges, financial reform plans need to be made not only limited to the classification of banks, but also the growing influence of cryptocurrencies and the unchain transaction system. 

Similarly, Governor Poudel argues that decisions should not be taken in a hurry or political pressure while formulating monetary policy.He has made it clear that the monetary policy should be free from the influence and influence of at the last minute as in the time of budget making. He said that since the post of governor is an appointed post, it should work for institutional stability within the mandate given by the Act rather than making it unnecessarily publicity-oriented.

Similarly, he said that fiscal policy should play a leading role } rather than monetary policy for liquidity management and economic development. He claimed that the transformation of the country would be possible by attracting investment from the private sector and banking if the government brought a clear fiscal policy for infrastructure development like expressway and tunnel. He suggested that the fiscal policy should pave the way for mobilizing capital in the productive sector rather than investing in and assets.