Nepal Rastra Bank’s Monetary Policy for fiscal year 2082/83 includes important provisions concerning microfinance institutions, focusing on dividend distribution, loan classification, and lending criteria for targeted groups.
Nepal Rastra Bank has incorporated several significant provisions related to microfinance financial institutions in its Monetary Policy for the upcoming fiscal year 2082/83, released on Friday. Governor Dr. Bishwanath Paudel highlighted that the current rule allowing microfinance institutions to distribute more than 15 percent in cash or bonus dividends annually will be reviewed.
Additionally, loans of up to Rs 3 lakh provided to youths going abroad for foreign employment, whether collateralized or not, can now be counted as loans to the disadvantaged class. For women, this limit has been set at Rs 5 lakh.
The policy also mentions that criteria for lending, definitions of the target groups, and borrower eligibility will be reviewed to ensure microfinance loans effectively reach the intended groups. Furthermore, the limits and regulations related to loans for disadvantaged groups and other directed loans issued by banks and financial institutions will be studied and revised if necessary.
This article was originally published on https://bajarkochirfar.com Translated with the help of AI and reviewed by our editorial team.
