KATHMANDU, Jan 18: Nepal Rastra Bank (NRB) has asked the banks and financial institutions (BFIs) to submit their plans for financial literacy programs within the first three months of every fiscal year.
Enforcing a Financial Literacy Framework Directive on Monday, NRB has targeted to make it mandatory for the BFIs to invest the prescribed amount for the promotion of financial literacy across the country. Although the central bank’s rule says that the BFIs need to invest at least one percent of their annual profits in financial literacy programs, the BFIs have hardly been implementing the regulator’s rule.
With the new rule in place, the BFIs have to submit their detailed work plans by the end of the first quarter while they also need to submit the evaluation report of their activities on the matter to NRB on a periodic basis. “The financial awareness and literacy programs should be done with the intention of corporate social responsibility, but not for the promotion of their businesses,” reads the NRB’s directive.