15 major bulletins from NRB circular based on monetary policy

    The major 15 bulletins from NRB’s circular based on monetary policy:

• Counter Cyclical Buffer to be maintained at 2% of Risk Weighted Exposure until Asadh 2077
• PAN to be issued mandatory for those borrowers who take loan equal to or above Rs 50 lakhs from BFIs
• While calculating CCD, loan can be provided to the full value of debenture of last 5 years
• Interbank borrowing to be excluded while calculating CCD
• BOD of BFIs should be within the age limit of 70 and acting BODs if cross age of 74 will no more be considered BOD
• CEOs of BFIs should be at most 65 and if acting CEO cross the age of 69, he/she will not be considered CEO
• Spread of commercial banks 4.4% and other BFIs 5%
• Exclusion of investment in government security while calculating spread
• Can’t take a deposit of more than 10% from a single firm, company or organization
• Commercial banks should issue debenture worth 25% of paid up capital until Asadh, 2077
• BFIs should disseminate all their information from Audio Notice Board and Nepali language to be also used in websites
• Commercial banks if go into merger within Asadh 2077, they will not require to take permission to open branches outside Kathmandu valley; No cooling period to CEOs and BODs, Issuance of debenture till one more year i.e. till end of Asad 2078 and 4.5% spread can be implied for one more year
• Regional level and Provincial CSR activities should be enlisted in annual financial reports
• B and C graded BFIs can maintain Capital Adequacy Framework as per Capital Adequacy Framework 2007
• Banks can no more issue insurance except loan with insurance.