Effortful to Minimize Hassles While Channeling FDIs, Central Bank Unveils Foreign Investment and Loan Management Bylaw - 2078 BS

Nepal is taking the course to the possibility of bringing Foreign Direct Investment without the approval of Nepal Rastra Bank. Nepal Rastra Bank has issued NRB Foreign Investment and Loan Management Bylaw - 2078 BS.

Earlier, the NRB had taken suggestions from the stakeholders by preparing a draft. After making some amendments to it, the bylaw was unveiled via a program organized today via Zoom.

Investment accounting has also been improved. After the investment is received, the accounting can be done in a national bank in the country. This minimizes the hassles (that various concerned parties had been reporting in the process of channeling FDIs) while maintaining the same level of scrutiny and credibility check. With this, the arrangements related to the approval and accounting of foreign loans have also been simplified.

To get a foreign loan, an entity will have to get the approval of the central bank. Approval will be provided within 15 days. Debt accounting should be done within 6 months. If the loan has been forwarded by specifying the repayment schedule, the payment can be made via the bank and financial institution. Borrowers do not have to visit the central bank itself.

In the program conducted today, Governor Maha Prasad Adhikari said that banks and financial institutions are now more empowered than ever. He also said that they have been made accountable with the handover of even greater responsibility.