KATHMANDU: Nepal Rastra Bank (NRB) has made the merger of microfinance companies with the cross-holding of banks and financial institutions compulsory.
Issuing a directive on Monday, BFIs have been given time till Ashar end, 2079 to prepare the action plan of the merger. Under the new provision, if a commercial bank, development bank, or finance company owns more than 10% shares in various microfinance companies (case of cross-holding), they will have to submit an action plan for the merger between the microfinance companies.
Similarly, BFIs have a shareholding of 51% or more on the microfinance company, the action plan for the merger between the companies or acquisition will have to be submitted.