The third quarterly review of the monetary policy seeks to relieve borrowers impacted by the second wave of COVID-19
KATHMANDU, May 18: Nepal Rastra Bank (NRB) has sought to waive the cash fines and ‘late fees’ to borrowers of banks and financial institutions (BFIs) for the period of prohibitory orders provided they are unable to pay back the loan amount on time.
Revised interest rate corridor system introduced
In a bid to provide some relief to the borrowers suffering from the impacts of the coronavirus, NRB through the third review of the Monetary Policy on Tuesday came up with the provision. “In the wake of the prohibitory orders enforced to minimize the impacts of the COVID-19, a provision will be made for the banks and financial institutions not to issue any notice of auction and loan recovery for the next one month of the authorities lifting the restrictive measure,” reads the revised monetary policy.
The revised policy also talks about facilitating the BFIs to grant relief to the borrowers on payment of interest and monthly instalments for the prohibited period. Similarly, the cash fund generated out of the corporate social responsibility of the BFIs will be spent on purchasing necessary equipment like oxygen cylinders, oxygen concentrators, vaccines and medicines useful in the fight against the pandemic.
