Nepal Rastra Bank Permits Disaster-Affected Microfinance Institutions to Relocate or Merge Branches Without Prior Approval

2nd September 2026, Kathmandu

Nepal Rastra Bank (NRB) has amended its regulatory provisions to allow licensed microfinance financial institutions (MFIs) operating in areas severely impacted by natural disasters to relocate or merge affected branches without seeking prior approval from the central bank.

NRB Permits Relocation or Merger

Regulatory Flexibilities and Operational Guidelines

Prior Approval Exemption: Microfinance institutions whose branches or offices were damaged or rendered operational unviable due to natural disasters—including recent flooding and landslides in Rasuwa and other affected districts—may immediately relocate or merge those outlets with nearby branches without prior regulatory authorization.

Ex-Post Notification Requirement: Following any branch relocation or merger executed under this provision, the concerned microfinance institution must formally notify Nepal Rastra Bank within seven days of the operational adjustment.

Advertisement

Amendment Basis: The central bank integrated this regulatory relaxation through formal modifications and additions to the Unified Directive, 2082 BS.

Strategic Objective and Financial Continuity

Uninterrupted Services: The policy provision aims to alleviate operational constraints faced by microfinance providers, ensuring continuous access to financial services for disaster-affected households and local communities.

Institutional Support: By streamlining administrative procedures, the central bank intends to facilitate rapid recovery and operational stabilization for licensed microfinance entities serving remote and high-risk geographical regions.

For More: NRB Permits Relocation or Merger