Skip to main content

What are the Core Objectives of Financial Policy for any country? Present Context

A) Financial inclusion
The definition of financial inclusion (FI) varies from country to country depending on national objectives, but it is commonly understood as a way to provide financial services to those who do not have them. FI embraces three core elements: access, usage and quality of financial services. The GPFI has defined FI as “a state in which all working age adults have effective access to credit, savings, payments, and insurance from formal service providers.”3 Financial inclusion allows the unbanked and underbanked segments of society to join the formal financial system, which ultimately helps to alleviate poverty, promote job security, security and improve livelihoods and advance social empowerment.

B) Financial stability
The South African Reserve Bank has defined financial stability as the smooth operation of a system of financial intermediation between households, firms and the government through a range of financial institutions. FI and FS are not ends in themselves, but rather facilitate sustainable and balanced economic growth. Various research studies and surveys4 have shown that financial inclusion plays an important role in achieving financial stability if policymakers can effectively apply the principle of proportionality, which balances risks and benefits against the costs of regulation and supervision while maximizing results. The South African Reserve Bank has supported this approach with seven guidance statements,5 and the State Bank of Pakistan has offered six I-SIP propositions6 that ease the design and implementation of policy interventions by identifying, managing and optimizing the linkages among financial inclusion, financial stability, financial integrity and consumer protection.

C) Financial Integrity
It means understanding the true impact of your economic interactions, and having that impact reflect your true intentions.

D) Consumer Protection
Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights, and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

Note: These are not my original works but compiled from different sources such as below:


Labels:

Comments

Post a Comment

Most Viewed

Windfall Gain Tax (आकस्मिक लाभमा कर) per Nepal Income Tax Act

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...
Post a Comment
Read more

Process for Electronic Billing Software Registration with Inland Revenue Department Nepal

Process is straight forward, one is required to submit the online form along with the following documents: 1)       Copy of the Tax Clearance Certificate 2)       Copy of the Permanent Account Number (PAN) 3)       Copy of Company Registration Certificate 4)       User Manual for the software signed by company representative and stamped on each page 5)       Guarantee letter that Data Amendment or Edit (Manipulation) is not possible on the software 6)       Data Backup and Recovery System is available on the software 7)       System Architecture Detail 8)       Software Set Up file and Invoice Sample in Excel – 20 copies each in 20 pen drive 9)       Connection with Central Billing Management Software (CBMS) – API can be collected Service Branc...
17 comments
Read more

Tax Collection Agency codes for IRD Offices all over Nepal

Inland Revenue Department Nepal has published the agency codes that shall be used for the collection of direct and indirect taxes for the general public's information. Each code consists of 9 numbers. There are in total 59 agency codes currently in use. From these codes, we can classify that there are four types of IRD offices currently in operation. 1) Inland Revenue Office 2) Tax Payer Service Office 3) Large Tax Payer Service Office, and 4) Medium Tax Payer Service Office When shall you use these codes? It shall be used while choosing the agency where the tax should be deposited while completing the form for depositing the taxes. Agency Code list below: S.N. Agency Code Name Address 1 305011620 Inland Revenue Office Lahan 2 305030201 Tax Payer Service office Phidim 3 305030301 Tax Payer Service office Illam 4 305030401 Tax Payer Service office Khandbari 5 305030601 ...
1 comment
Read more