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KATHMANDU: The Nepal Rastra Bank (NRB) has directed microfinance financial institutions (MFIs) opting to go for merger to submit an action plan by mid-July next year.
NRB’s Department of Banking and Financial Institutions Regulation issued a directive on Monday in this regard.
Similarly, in order to reduce the number of MFIs, NRB has directed the banks and financial institutions with a cross-holding of more than ten percent to merge or acquire each other. Such arrangement will be attractive in case of MFIs established by commercial banks, development banks and finance companies as founding shareholders.
“The banks and financial institution having more than 10 percent share in another banks and financial institution or the micro-finance institutions owned by or with more than 51 per cent shares of A, B and C class banks and financial institutions are directed to submit their merger action plan by mid-July 2022,” NRB directive said.