NRB directs BFIs to provide 2% discount on interest « Khabarhub
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NRB directs BFIs to provide 2% discount on interest

29 April 2020  

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KATHMANDU: Nepal Rastra Bank (NRB) has instructed banks and financial institutions (BFIs) to provide a two per cent discount on the interest rate to minimize the impact of novel coronavirus on borrowers.

The central bank, through a notice, instructed the BFIs to provide discount to the COVID-19-affected entrepreneurs on the interest as of April 12.

The NRB said the banks and financial institutions issuing loans henceforth have to reduce the interest by 2% and count the interest amount of the fourth trimester of the fiscal year 2019/2020.

However, the NRB said this provision does not apply in the case of food processing, sale and distribution; LPG bottling, sale and distribution; the internet service providers; telecom service providers; the television service providers; the tobacco and alcohol based industries; and the hydropower projects in operation.

Likewise, the bank has also directed BFIs to make provisions for extending the time for payment of the monthly/trimester instalments to be collected in the months of Baisakh and Jesth till the coming Asar-end.

The NRB directive states that no additional charges or fines can be levied in the case of such instalments.

The central bank has stated that the timeline for payment of the principal and interest of short-term loans of all recurrent capital-type to be paid during the lockdown period could be extended by 60 days.

Publish Date : 29 April 2020 16:56 PM

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