Housing Grants through all banks and finance cos

The National Reconstruction Authority (NRA) Sunday decided to allow all commercial banks, development banks and finance companies to distribute the housing grants to the families that lost their house in the devastating earthquakes in April and May last year.

 The reconstruction body had revised its earlier decision to distribute the grant only through the ‘A’ grade commercial banks.

Last week, it directed the District Development Authority and government owned commercial banks – Rastriya Banijjya Bank, Agricultural Development Bank and Nepal Bank – to facilitate the distribution of the housing grant in Gorkha, Nuwakot, Ramechhap, Sindhuli, Okhaldhuna, Rasuwa, Kavre and Dhading.

Nepal Investment Bank was facilitating the grant distributing in Singati of Dolakha district.

Issuing a press statement, the NRA clarified that the new provision would help the house owners to get the grant easily after the involvement of all banks and finance companies in that process.

There are 30 commercial banks, 73 development banks and 47 finance companies in the country extending their banking and financial services through 1806, 856 and 201 branches respectively.

According to the Nepal Rastra Bank (NRB) report, there was one branch of bank and financial institution, including 1,160 branches of microfinance companies, for every 6971 people by January this year.

“As all the branches of banks will be involved in the distribution of the house reconstruction grant, people will face less hurdles and will get the money in time,” read the press statement.

The reconstruction body had consulted with the Nepal Bankers' Association, Development Bankers Association and Nepal Financial Institution Association before making the decision.

Meeting of the Authority has decided to distribute the housing grant as per the Treasury Single Account (TSA) standards and to request the NRB to compensate the distributed money on the same day or the next and deposit the money to the bank account of the house owners qualified for the grant.

“The data of grant agreement between the NRA and house owners will be provided to the banks and finance companies. We will request the NRB to facilitate the banks and finance companies to open bank accounts of house owners without their physical presence,” said the Authority.

According to NRA spokesperson Ram Prasad Thapaliya, the reconstruction body would prepare standard operation procedure (SOP) for the grant distribution and implement it.

The NRA has approved reconstruction, rehabilitation and livelihood programmes of ADARA Development Nepal, ASB, Sipradian Sahitya Sanstha, Dhurmus Suntali Foundation, Gidanchaur Integrated Model Village Reconstruction and Tourism Promotion Programme, Save the Children and Room to Read.