KATHMANDU: Nepal Rastra Bank (NRB) has introduced amendments to the Unified Directive, 2025, issued for banks and financial institutions, introducing several changes related to share loans, vehicle financing, loan restructuring and account verification requirements.
The Bank and Financial Institution Regulation Department issued a new circular addressing Class ‘A’, ‘B’ and ‘C’ licensed institutions, incorporating changes across six major areas.
Higher limit for share-backed loans
NRB has relaxed the loan limit for margin lending against shares.
Under the revised provision, banks can now provide loans of up to 70 percent of the lower value between the average closing price of a listed company’s shares over the past 180 trading days and the current market price.
Banks will also be required to prepare a product paper assessing a company’s strength based on factors including paid-up capital, profitability, credit rating and regulatory compliance.
For companies receiving higher scores in the assessment, banks can maintain a loan-to-value ratio of up to 80 percent, an increase of 10 percentage points.
Banks must also publish such product papers on their official websites.
Loan restructuring facility for construction businesses
NRB has introduced a relief measure for construction companies facing financial difficulties due to delayed payments from public agencies.
Banks will be allowed to restructure or reschedule loans of construction businesses that have completed or are undertaking projects but have pending payments, based on cash flow analysis.
The facility will require borrowers to pay 10 percent interest and must be utilised by the end of Asoj 2083.
Loans restructured under this provision must maintain a minimum 5 percent loan loss provision.
Easier financing for public electric vehicles
The central bank has also introduced flexibility in vehicle financing.
While the general loan-to-value ratio for private and electric vehicles remains at 60 percent, banks can provide loans of up to 80 percent for large electric vehicles used in public transportation.
The same limit applies to commercial vehicles damaged during protests and requiring replacement.
National ID details required for bank accounts
NRB has further strengthened the use of the National Identity Card for banking services.
While new account holders have already been required to provide their National Identity Card or identification number since January 14, 2025, existing customers must now update their details through mobile applications or other available channels by the end of October.
However, exemptions and special conditions have been maintained for Nepalis living abroad, persons with disabilities and minors below 16 years of age.
Changes in working capital loans and interest accounting
The implementation date for the variance-related provision under the Working Capital Loan Guidelines, 2022, has been postponed.
The provision will now come into effect from Shrawan 1, 2084, according to the revised directive.
NRB has also revised rules regarding interest income recognition by banks.
Banks will only be allowed to record interest received within 15 days after the end of the fiscal year as income. Any outstanding interest not received within that period must be transferred to a regulatory fund after deducting taxes, bonuses and other mandatory allocations.
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