First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has removed financial concessions provided to the private sector during the Covid-19 period.
The central bank amended the Integrated Directive 2078 issued to banks and financial institutions and removed such concessions.
Earlier, there was a provision that the grace period could be extended to 1 year for loans in sectors largely affected by Covid-19, 9 months for loans in medium-affected areas and 6 months for loans in low-affected areas. Now such period cannot be extended, as per NRB.
NRB has also removed the facility to reschedule and restructure the loan. This one-time facility was given at the borrower’s request for loans to largely affected and moderately affected businesses due to Covid-19.
Additionally, through the monetary policy of the current financial year, Governor Maha Prasad Adhikari amended the existing 4/12 provision for margin loans. To implement the revised system, the Central Bank has issued a unified guideline on Wednesday.
Now you can take a loan of more than four crore rupees from any bank and financial institution by keeping shares as collateral. However, it has been stipulated that the total loan taken by the debtor from various banks by keeping the shares as mortgage should not exceed 12 crore in total.
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