NRB Amends Integrated Directive; No Penalty Shall be Charged If the Loan is Paid within 30 days of Exceeding the Loan Amount

Nepal Rastra Bank (NRB) had published second quarterly review of monetary policy for fiscal year 2079/80 by adding and implementing a number of changes, particularly in working capital loans, cash margin, and the interest rate of banks and financial institutions. Among such changes was the new rule that by the end of Jestha 2080, it will be arranged that penal interest will not be charged if the loan is paid within one month of exceeding the principal / interest liability of the borrower.  

NRB has amended the integrated directive given to banks and financial institutions of "A," "B," and "C" in order to clarify that if a borrower does not pay the principal or interest of the loan within the exemption period, this provision shall not be considered as a hindrance to charging the penal interest for the period exceeding the entire loan as per the predetermined conditions.

Among others, NRB has also mentioned that Banks and financial institutions shall remain opened from 10 A.M to 1:30 P.M in case the government announces public holiday unexpectedly due to various reasons.

Recommended: Second Quarter Monetary Policy 

Recommended: Previously amended Integrated Directive. 

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