NRB’s directive to BFIs to release loans to COVID-19 affected sectors
KATHMANDU:- The Nepal Rastra Bank (NRB) has directed the banks and financial institutions (BFIs) for loan investment for the recovery of the COVID-19 hit sectors.
The central bank has issued a directive to the ‘A’, ‘B’, ‘C’ and ‘D’ class BFIs to provide loans as per the procedures approved by the Council of Ministers on November 12.
According to Executive Director of NRB, the BFIs are asked to invest maximum Rs 70 million for the recovery scheme in the affected areas. Likewise, the BFIs are directed to provide amount equal to annual wages of the partially affected sectors and 50 per cent additional in the annual wages or maximum Rs 50 million.
The national-level banks can invest only up to 10 per cent of their primary capital under this scheme of loan.
Of the total loan investment, 30 per cent of the amount should be invested for cottage, small and medium enterprises.
Likewise, the BFIs should ensure provision to accept application through online system for the loan request.