The Central Bank has released new guidelines to improve the transparency and customer-friendliness of the banking system; the limit on margin loans has not been changed.

The Central Bank has released new guidelines to improve the transparency and customer-friendliness of the banking system; the limit on margin loans has not been changed. » Meroshare

As a result of the new rule, banks and financial institutions are no longer authorized to send out random warnings to debtors who have not paid their loans.

Under the new laws, banks and financial institutions will only be able to issue a public notice for loan recovery after six months of non-recovery. By releasing a unified guideline to all financial institutions, the central bank reached an agreement with BFIs today. Between the time of the loan’s initial disbursement and the time of the public notice and collateral auction proceedings, at least six months should have transpired in order to recover a loan that has been in circulation for more than one year.

The Nepal Rastra Bank has also asked banks and financial institutions to publish their earnings per share on their websites in accordance with the new standards. Banks and financial organizations will now be forced to publish their yearly earnings per share data.

Financial institutions (BFIs)


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