Monetary policy review: NRB gives relief to borrowers

KATHMANDU: The Nepal Rastra Bank (NRB) has adopted a liberal policy with the objective of providing some relief to borrowers.

The central bank has given some relief to borrowers by publishing a half-yearly review of the monetary policy of the current fiscal year, 2022/23 here today.

An arrangement has been made where a bank cannot take penalty interest if a borrower makes payment of loans along with the interest within a month after the expiry of the deadline till mid-June 2023, reads the review.

Likewise, there is a provision that loans up to Rs 20 million banks that remain active until January 14 being floated through banks and financial institutions to facilitate running small and medium industries and businesses can be restructured and retabulated within July 16 after analyzing their cash flow and incomes.

To additionally strengthen loan quality, there is a policy of reviewing the provision of converting inactive loans into the group of good and micro surveillance after becoming regular under the loan categorisation and loss management.