NRB asks BFIs to waive penal interest on loans that cross the due date for payments

Published On: February 25, 2023 07:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 25: Nepal Rastra Bank (NRB) has asked banks and financial institutions (BFIs) not to take penal interest from the borrowers for the next one month from the date that the outstanding loans have been pending.  

Materializing the provision that it enforced through the mid-term review of the Monetary Policy 2022/23, the central bank issued the directive for the BFIs on Friday. “The provision will be in effect only for the loans in which the due date will be till mid-June 2023 at the latest,” reads the NRB directive.

Similarly, the NRB has also asked the BFIs to restructure and reschedule the outstanding loans up to Rs 20 million given to small and medium enterprises (SMEs) by mid-July 2024. Likewise, the BFIs have been asked to provide essential banking services during 10 am till 1:30 pm even on the public holidays to be announced by the government. 


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