Banking sector in Nepal has been experiencing a liquidity shortage for the past few months. All BFIs have been unable to provide loans to individuals and businesses in lack of cash flow. Again, the inflow of remittance has been declining and has been poor. Foreign currency reserves have declined significantly and Balance of Payment (BoP) has been in deficit. Nepali economy is facing these challenges at a time when efforts are imperative to revive it from the impact of the COVID-19 pandemic. In this context, Nepal Bankers’ Association (NBA) President and Chief Executive Officer (CEO) of Agricultural Development Bank Limited (ADBL) Anil Kumar Upadhyay talked about challenges and prospects of the banking sector with Laxman Kafle of The Rising Nepal. Excerpts: