Nepal | August 05, 2020

NRB directs BFIs to halt loan recovery till mid-July

Himalayan News Service
Share Now:

Kathmandu, March 29

Amid businesses affected by the coronavirus seeking relief from the government, Nepal Rastra Bank (NRB) has set moratorium on principal and interest payments till mid-July.

Issuing a circular today, the central bank has asked banks and financial institutions (BFIs) to defer the collection of monthly or quarterly instalments (that were to be collected by mid- March) from borrowers till mid-July. The provision is applicable to all borrowers, including credit card borrowers, as per NRB.

Moreover, NRB has also directed BFIs not to take any penal charges or penal interest on instalments that borrowers should pay banks as of mid-March.

In case if any borrower makes monthly/quarterly payment within mid-March, central bank has also asked BFIs to give 10 per cent discount on interest rate.

A few days ago, the meeting of the Financial Sector Management and Coordination Committee led by Finance Minister Yubaraj Khatiwada had directed BFIs, as well as non-banking institutions, to halt the collection of principal and interest on loans disbursed in sectors hit by the coronavirus.

Similarly, NRB has also raised the size of refinancing fund by Rs 10 billion to Rs 60 billion. The central bank has fixed five per cent interest rate on all loans that BFIs acquire from NRB, including the refinancing facility.

Meanwhile, NRB has also directed class ‘A’ ‘B’ and ‘C’ financial institutions to maintain the cash reserve ratio (CRR) — the portion of cash deposits that banks are required to park in the central bank vault — at three per cent.


A version of this article appears in print on March 30, 2020 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Former king Juan Carlos decides to leave Spain amid corruption allegations

Prosecutors looking into bribe allegations Pressure had been building on royals to take action Former king remains "at the disposal" of prosecutors The 82-year-old helped guide Spain back to democracy MADRID: Spain's former king Juan Carlos has decided to leave his country, a drama Read More...

Ruling party co-chairs stick to their guns

Oli to remain PM till general election, co-chair till General Convention: NCP leader Gokul Baskota Kathmandu, August 3 Co-chairs of the ruling Nepal Communist Party (NCP) Pushpa Kamal Dahal and KP Sharma Oli held talks today in an attempt to break the current impasse in the party, but failed to Read More...

Airlines seek permission to resume flights

Airline companies have to resubmit their proposal for slots if flight operations are halted for more than 60 days Kathmandu, August 3 The government's decision to resume domestic and international flights from August 17 has prompted airline companies to start submitting their proposals to the Ci Read More...

Dhading bans sand mining during monsoon

Dhading, August 3 In view of increasing deaths related to river mining, the authority in Dhading decided to impose a complete ban on sand mining from rivers in the district during the monsoon season. There is already a rule that bans mining of river products using heavy equipment during the ra Read More...

File photo of Melamchi Water Supply Project tunnel.

‘Technical error caused Melamchi tunnel accident’

Kathmandu, August 3 A committee formed to investigate Melamchi tunnel incident has concluded that one of the sluice gates on the tunnel of the Melamchi Water Supply Project had broken due to a technical error. A project engineer and a driver had died due to the flood resulting from the breakag Read More...

reproductive health, Minister of State for Health and Population, Padma Kumari Aryal

Work responsibly, Minister Aryal directs employees

Kathmandu, August 3 Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has directed government employees to work responsibly as the ministry has the responsibility of protecting the property of over 30 million people of the country. She said this at the annual Read More...

PM visits under-construction museum at his private residence

Bhaktapur, August 3 Prime Minister and Co-chair of the ruling Nepal Communist Party (NCP) KP Sharma Oli today visited his private residence at Balkot and met with people from different walks of life. This is the third time the prime minister has visited his private residence after being electe Read More...

‘Harsher punishment against acid attackers’

Kathmandu, August 3 Women and Social Welfare Committee of the House of Representatives has directed the home ministry to make some amendments to the legal arrangement and punishment related to incidents of acid attack, pointing out the need of timely revision. After the discussion held on ‘a Read More...