NRB not forcing Big merger as mandatory directive; Incentives offered to encourage merger

The Monetary Policy of 2076/77 had gotten quite the hype that NRB will be forcibly pushing banks towards big merger. However, as the policy is out the merger is not made a mandatory requirement, rather it has been incentivize by various concessions.

These facilities are:

- The spread rate for commercial banks was 4.5% last year and this year it has been reduced to 4.4%. However, the merged banks have till Ashad 2078 to reach 4.4%, while the non-merged banks will have to reduce their spread by Ashad 2077.
- The merged entity can establish branches without the permission from NRB.
- Cooling period of 6 months for CEO and Deputy CEO won't be applied till 2078 Ashad.
- The merged banks will be getting priority for refinancing. 
- Flexibility in lending given to priority sectors.

- The requirement that banks need to issue debenture worth 25% of paid up capital will be extended till Ashad 2078