Nepal Rastra Bank — the banking sector regulator — today introduced
Unified Directives 2013, which, among others, has extended the deadline
to limit personal loans to Rs 10 million and allowed financial
institutions to continue parking money at commercial banks till mid-July
2014.
The central bank had last year prevented banks and financial institutions from issuing personal loans, like overdraft and revolving credit, of over Rs 10 million to one individual.
At that time it had given banks and financial institutions a deadline of mid-July 2013 to limit such loans to Rs 10 million.
Issuing the latest unified directives, the central bank said banks and financial institutions have until mid-July 2014 to bring such loans into size defined by NRB.
The unified directives has also allowed development banks and finance companies to park their money in interest-earning accounts till mid-July 2014.
Earlier, the central bank had said such deposits have to be removed by mid-July this year.
The latest unified directives has also said banks and financial institutions need not allocate additional 20 per cent loan loss provisioning on loans secured through third-party collateral — or collateral belonging to those other than family members — until the time of their repayment or until mid-July 2014 if such loans were extended prior to issuance of a directive last year.
src: THT
The central bank had last year prevented banks and financial institutions from issuing personal loans, like overdraft and revolving credit, of over Rs 10 million to one individual.
At that time it had given banks and financial institutions a deadline of mid-July 2013 to limit such loans to Rs 10 million.
Issuing the latest unified directives, the central bank said banks and financial institutions have until mid-July 2014 to bring such loans into size defined by NRB.
The unified directives has also allowed development banks and finance companies to park their money in interest-earning accounts till mid-July 2014.
Earlier, the central bank had said such deposits have to be removed by mid-July this year.
The latest unified directives has also said banks and financial institutions need not allocate additional 20 per cent loan loss provisioning on loans secured through third-party collateral — or collateral belonging to those other than family members — until the time of their repayment or until mid-July 2014 if such loans were extended prior to issuance of a directive last year.
src: THT
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