Nepal Rastra Bank brings in convenience in paid-up capital for BFIs working in a province; Amends Unified directive 2075

Nepal Rastra Bank has introduced convenience in the paid-up capital for the banks and financial institutions working in a single province. Along with the convenience, Nepal Rastra Bank has also directed such BFIs to either transfer or shut down the branches outside the working areas.

Nepal Rastra Bank has made amendments in the Unified Directives 2075 providing conveniences to such BFIs regarding the classification of the banks and minimum paid-up capital.

With the amended directive, the minimum paid-up capital of the national level development bank stays at Rs 2.50 arba while the development banks working in a province will have to maintain minimum paid-up capital of Rs 1.20 arba.

Similarly, national level finance companies need to maintain Rs 80 crore as minimum paid-up capital while he provincial finance companies will have to maintain Rs 50 crore as minimum paid-up capital.

After the introduction of federalism, the development banks and financial institutions are classified as national, provincial and district level. However, the commercial banks will not be allowed to work on a provincial basis.

The development banks and finance companies working on a provincial basis will have to transfer or shut down current branches outside their working area within Asar end.