18th December 2020, Kathmandu
Due to Covid-19, if the industrialists and businessmen affected by corona are unable to repay their loans in time. Banks and financial institutions will no longer be allowed to be blacklisted till mid-July.
The Nepal Rastra Bank (NRB) has given integrated guidelines to all the banks and financial institutions today to stop the blacklisting of businessmen affected by COVID-19 if they are unable to manage, to pay the loans taken from banks and economic institutions.
The central bank has made the provision by issuing an integrated directive as per the new provision made in the quarterly evaluation of monetary policy for the contemporary fiscal year. In the case of debtor affected through Corona Virus for six months or less, the time restriction for blacklisting has been extended.
Similarly, the central bank has issued a new directive to Class A, B, and C banks and financial institutions no longer to lend on share collateral to businesses besides a trading value of at least 250 days.
According to the NRB, it will now not be possible to take a loan through pledging shares of institutions that have been in loss for the last three consecutive years, institutions that have no longer been operational for one year, institutions that have no longer held a general meeting for the last three years and institutions that have not had a transaction value of at least 250 days.
Similarly, provision has been made for disbursement of up to Rs. 5 million per capita overdraft. The central bank has stated that the banks and economic institutions that disburse loans have to disburse loans solely after making certain that the restriction is no longer exceeded.