Kathmandu, August 15
Nepal Rastra Bank (NRB) has stopped accepting applications for establishment of new microfinance institutions.
Earlier, the central bank was issuing licence to microfinance companies that planned to set up their head office in Manang, Jumla, Humla, Dolpa, Kalikot, Mugu, Jajarkot, Bajhang, Bajura and Darchula districts. However, now even those microfinance companies that plan to set up their head office in the aforementioned districts will not be able to apply for a new licence.
Issuing a circular today, NRB has said that it will no longer grant permission to establish new microfinance companies in any part of the country.
According to Narayan Prasad Paudel, spokesperson for NRB, the 45 non-governmental organisations and other institutions directed to convert into microfinance institutions will be getting their operating licences soon.
“However, in the case of 60 pending applications, nothing has been decided,” Paudel informed.
While unveiling the monetary policy of last fiscal, NRB had announced that it would stop accepting applications for setting up new microfinance institutions, except for in the 10 aforementioned districts.
According to data maintained by NRB, currently 48 microfinance institutions are in operation across the country.
A version of this article appears in print on August 16, 2017 of The Himalayan Times.