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The Nepal Rastra Bank (NRB) has issued the monetary policy for the upcoming fiscal year 2082/83 (2025-26).

Unveiling the monetary policy, the Governor of the Central Bank, Dr Biswo Nath Poudel, stated that a flexible policy has been adopted cautiously.

The monetary policy mentions approving and implementing the second financial sector strategy.

The bank rate, which serves as the upper limit of the interest rate corridor, has been set at six per cent, and the policy rate at four and a half per cent. Previously, the bank rate was 6.5 per cent and the policy rate was 5 per cent.

According to the monetary policy, the limit for loans issued for the construction and purchase of private residential houses has been increased from Rs 20 million to Rs 30 million. 

When constructing or purchasing the first house, a loan-to-value ratio of up to 80 per cent can be maintained, while for others, a maximum of 70 per cent can be established.

The limit for personal share collateral loans has been increased from Rs 150 million to Rs 250 million.The limit for the amount Nepalese traveling abroad can carry has been increased from two thousand five hundred US dollars to three thousand US dollars.

The monetary policy has set a target to increase the private sector loan disbursement by 12 per cent in the upcoming fiscal year.

Insurance companies have paid out nearly Rs 73bn in claims over the first eleven months of the current fiscal year 2024/25. Data released by the National Insurance Authority (NIA), the insurance sector regulator, shows 14 life insurance companies, three micro-life insurers, 14 non-life insurers and four micro non-life insurers settled claims worth Rs 72.94bn in 11 months of the current fiscal year.

While payouts by life insurance companies declined slightly, non-life insurance claims have increased in the current fiscal year largely due to losses from floods and landslides in September last year. In the same period of the previous fiscal year, insurance companies settled Rs 69.98bn in total claims. Life insurers had paid out Rs 52.64bn in claims across 238,608 individual cases by mid-June 2025, down from Rs 53.96bn paid to settle 268,677 cases in the same period last year. This marks an 11.19 percent decrease in the number of claims settled and a 2.45 percent drop in total payouts.

Likewise, non-life insurers paid out Rs 20.30bn in claims across 127,282 cases during the review period. Last year, they had paid Rs 16.02bn for 134,534 claims. Although the number of claims settled dropped by 5.39 percent, the payout amount rose by 26.74 percent. Despite this, pending life insurance claims have risen significantly. As of mid-June, insurance companies had yet to settle 54,422 claims worth Rs 4.58bn. At the same point last year, the number of pending claims stood at 39,287, amounting to Rs 2.87bn. This means the number of unsettled claims has grown by 38.49 percent, and the pending amount has surged by 59.61 percent.

The number and value of unsettled claims have also increased in the non-life segment. By mid-June, non-life companies had 106,757 pending claims worth Rs 30.46bn-an increase of 4.41 percent in the number of cases and 50.38 percent in the total amount. In the same period last year, there were 102,251 such claims amounting to Rs 20.26bn in outstanding amounts.

The Nepal Stock Exchange (NEPSE) gained 25.89 points to close at 2,731.80 points on Thursday.

Similarly, the sensitive index surged by 7.55 points to close at 472. 02 points.

A total of 26,470,840-unit shares of 312 companies were traded for Rs 9. 68 billion.

Meanwhile, Mai Khola Hydropower Limited (MKHL) was the top gainer today, with its price surging by 8. 15 percent. Likewise, Corporate Development Bank Limited (CORBL) was the top loser as its price fell by 9.92 percent.

At the end of the day, total market capitalization stood at Rs 4. 55 trillion.

Nepal Electricity Authority (NEA) will advance its pump‐storage programme to bolster energy security, having applied for a licence to conduct a pre‐feasibility study for a 594 MW project.

Executive Director Hitendra Dev Shakya reported that the NEA has approached the Ministry of Energy for studies on two pump‐storage facilities. Reviewing his first 100 days in office, he said prioritising pump storage has been a key achievement.

The NEA has prepared pre‐feasibility proposals for the 100 MW Kulekhani–Sisneri and the 494 MW Hulingtar–Dumkim projects. To ensure reliable supply, it has also launched an initiative to assess and support a battery energy storage system (BESS) alongside the pump‐storage schemes. Meanwhile, licensing for the Uttar Ganga and Upper Arun hydropower projects has progressed.

Shakya noted that, facing a payment obligation of Rs 14bn, the Authority will secure short‐term loans. He attributed delays in the Hetauda–Dhalkebar transmission line to funding constraints. He added that foundational reforms and long‐term plans set in motion during his initial 100 days will now be fast‐tracked. Projects under way include the Nijgadh–Pokhariya line, the Balaju–Maharajgunj (via Singha Durbar) route, and the Dudhkoshi transmission corridor.

To resolve disputes over dedicated and trunk‐line tariffs, the NEA has received 46 review applications; a committee is working to finalise these soon.

For Kathmandu Valley’s power stability, the Distribution Control Center in Syuchatar will now monitor 17 feeders connected to various switching stations and substations around the clock.

Under a Public–Private Partnership model, the NEA has issued an Expression of Interest for a 400/200 kV transmission line to integrate private-sector generation into the national grid rapidly.

Through its Energy Mix Programme, the NEA sought proposals for 960 MW of solar capacity via competitive procurement. Of 63 shortlisted projects, it has signed Power Purchase Agreements totalling 170 MW with eight companies.

On Tuesday morning, flooding in Bhotekoshi, Rasuwa forced the shutdown of 240 MW of output—230 MW from NEA plants and 10 MW from the private Mailung Khola facility. The 111 MW Rasuwagadhi plant suffered the worst damage, followed by the 60 MW Trishuli 3A project. While most stations will resume generation once waters recede, Rasuwagadhi and Trishuli 3A will require extended repairs.