Central Bank
Amendment to the Unified Directive, 2080 issued by Nepal Rastra Bank to "A", "B" and "C" category licensed institutions.

Nepal Rastra Bank has recently issued a notice regarding amendments to NRB Directives 2080. Here are some major highlights listed below:

i.  Considering necessity and justification, the loan may be rescheduled and/or restructured by recovering at least 10 percent of the interest dues. However, the loan may be rescheduled and/or subject to:
  • Such rescheduling and/or restructuring has to be done by Chaitra End 2080.
  • Categorized as Performing Loan in Ashad End 2080.
  • For rescheduled and/or restructured loans, a 5 percent loan loss provision should be maintained. 
  •  Rescheduled and /or restructured accounts should be classified into the same category.
ii. The first home buyer for self-purpose, Rs.50 lakh Loans can be granted/renewed based on tax filing documents in the case of taxable income. Up to the level and in the case of such loans, the Debt Service ratio can be maintained at a maximum of 60 percent.

iii. Provisions related to Earthquake Victims have been added.

iv. Real Estate loans for land acquisition and development shall attract a risk weight of 125%.

v. Lending against shares (above Rs. 5 Million) shall attract a risk weight of 125%.

Full Details: Source: NRB Website