Nepal Rastra Bank is not backing down any time soon

ShareSansar, September 10:

Today the news has surfaced on few media platform suggesting that the Nepal Rastra Bank (NRB) might lower the requirement to increase the paid up capital of Bank and Financial Institutions (BFI).

Through the monetary policy for fiscal year 2072/73, the NRB has directed the Banijya Bank to increase its capital to Rs 8 billion and national-level development banks to Rs 2.5 billion by the end of Asadh of 2074 BS. Likewise, the development banks working in four to ten districts should increase its capital to Rs 1.2 billion and the development banks working in one to three districts should increase its capital to Rs 500 million by the same period. As of now, BFIs are required to submit plan to increase their paid up capital by the end of Bhadra, 2072. BFIs that fail to increase the paid up capital as stated above by the deadline will be barred from collecting deposits and issuing loans.

Sharesansar caught up with Mr. Trilochan Pangeni, Spokesperson of NRB, to clear the issue.

Mr. Pangeni has clarified that the NRB is not backing down on its directive to BFIs regarding the requirement to increase paid up capital by Ashad, 2074. However, he stated that there is a provision which allows NRB to issue directive allowing BFIs to lower their paid up capital. Furthermore, he stressed that there is no such ongoing discussion in NRB to back down from directives issued through Monetary Policy 2072/73.