Kathmandu, Feb. 28
The Nepal
Rastra Bank has allowed the banks and financial institutions (BFIs) to spend 5
per cent money from their Corporate Social Responsibility fund in the promotion
of electronic transaction.
Making
amendments in the Integrated Directives 2077 for the BFIs, the central bank has
created the new provision for them.
It amended
the point 8(2) of the directives to allow the banks to restructure or
reschedule the loans by the end of the current fiscal year 2020/21 if the
borrowers repaid the 5 per cent loan of their total loan liability. The
provision is amended to facilitate the borrowers that couldn’t pay 10 per cent
amount of the total loan liability by the end of the first half of the fiscal
in mid-January.
As per the
earlier provision, the BFIs were not allowed to restructure or reschedule the
loan until they received 10 per cent of the total interest amount.
The central
bank also created a new provision to punish the board of directors and chief
executive officer of a BFI in case the company violated the interest spread
rate. In case the spread rate crossed the limit, it should be brought within
the limit within the same quarter.
Likewise,
commercial banks should maintain the share of call deposit in foreign currency
within 10 per cent of their total deposits while development banks and finance
companies have 15 per cent limit for the same.
Meanwhile,
the central bank has barred the class ‘D’ microfinance institutions to from
establishing a branch in the Kathmandu Valley without opening two branches
outside it.
They would
be allowed to open a branch in a ward in Kathmandu if there were not any
branches of a microfinance company.
Published in The Rising Nepal daily on 1 March 2021.
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