Rastra Bank becomes more flexible towards foreign lending; Commercial Banks able to bring loans on Indian currency

As per the direction issued by Nepal Rastra Bank, the commercial banks can now take the loans on Indian currency. Rastra bank had issued a direction for the implementation of the provision mentioned in the Monetary Policy on Wednesday.

The commercial banks will be able to take loans upto 25% of their core capital in the Indian currency. Previously, Rastra Bank had opened its gates for the loans to be made in Dollars. As per the issued direction, if any of the banks have already collected loans in dollars, they will be able to take loans upto 25% of the core capital including the loans taken in dollars.

The loans taken through such means should be utilized only in the Infrastructural, Tunnel, Agriculture, Tourism and such sectors.The time period for such loans may last from 1 year till 5 years.

The inerest rates of the loans taken in  Indian Currency shall be determined by adding 1% premium to the average discounted interest rate of the 364 days treasury bills issued by the Indian government.;