NRB directs BFIs to disclose their capital plan

The Nepal Rastra Bank has issued the directive to all Banks and Financial (BFI) institution to disclose their plan to increase paid up capital as stipulated in monetary policy for fiscal year 2072/73. Issuing the circular on Ashwin 07, 2072, NRB have ordered BFIs to put the the proposal on their respective website. However, the central bank has not set up a deadline for BFI to disclose their capital plan. Through the monetary policy of 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. Furthermore, Bank and Financial Institutions (BFIs) that fail to increase the paid up capital as stated above by the deadline will be barred from collecting deposits and issuing loans. Issuing another directive, the NRB had asked BFIs to submit their plan, within Bhadra 2072, to increase the paid up capital. BFIs can go for merger, acquisitions and issue right & bonus shares to meet up the increased paid up capital set forth by NRB