Banks and financial institutions will not be allowed to buy shares of microfinance
Banks and financial institutions are not allowed to buy shares of microfinance. The purchased shares have to be sold by mid-December. The regulator Nepal Rastra Bank (NRB) has made an arrangement that banks and financial institutions will not be allowed to buy shares of microfinance as the share price of microfinance has started rising at a high rate.
The NRB has amended the Unified Directive to prohibit banks and financial
institutions from investing in the shares of 'D' class MFIs except for the
purpose of counting them as poor class loans.
The NRB, which had earlier instructed to sell the shares by mid-December, has
taken such a step after finding that the price has been increased by cornering
the shares of microfinance.
Banks
and financial institutions that have to provide information about interest rate
change has to provide information about interest rate change to the concerned
customers immediately. The NRB has issued a circular to implement the new arrangement made in the third review of the monetary policy and directed to
provide the information related to the interest rate change to the concerned
customers immediately.
The directive states that banks and financial institutions should immediately
provide information related to deposit and loan interest rate changes to the
concerned customers through SMS / email.
NRB has also directed to activate the inactive account by updating and
confirming the customer identity through electronic means as well.
NRB has tightened the interest rate on term deposits collected through bidding
and has made an arrangement that the interest rate cannot be changed for three
months once it is published. The directive states that the difference in the interest rate on different types of savings accounts should not be
differentiated by more than 2 percentage points and the interest rate should be
adjusted so that all types of savings accounts are equally applicable when
changing interest rates.
Banks
and financial institutions have to provide discounts on the interest rate or
interest amount as an incentive to the customers who can maintain their
credibility by paying the loan installment or interest during the prohibition
period. NRB has directed that the Board of Directors should make a
decision on such exemption and make it public on its website and implement it
in a transparent manner.
Banks and financial institutions can complete the necessary procedures and
renew the term deposits, securities and letters of credit, and other loans that
have expired during the injunction period. The NRB has also directed the
banks to provide loans at the base rate to the existing health care providers,
hospitals or industries to set up liquid oxygen plants or
oxygen plants.
Provision has been made that if the required commercial operation date of the
power projects already approved by this bank for interest capitalization is
changed, the approval of NRB is not required for capitalization of interest for
the changed period.
Loan recovery and sale
to be allowed to take the information
injunction ended a month's loan recovery and sale to the provision of
information out of the NRB is. Banks and financial institutions have been
instructed to implement such an arrangement implemented through the third
review of the current fiscal year.
NRB has also made an arrangement not to charge any penalty or additional fee
for the recovery of the customer's loan for one week after the expiry of the
injunction.
Similarly, during the period of prohibition issued for the reduction of
Kovid-19 infection and for one month after the expiration of that period, the organization is not allowed to issue any information related to collection or
auction.
