15th October 2025, Kathmandu
In a significant and humanitarian move, the Nepal Rastra Bank (NRB) has issued a directive that allows Banks and Financial Institutions (BFIs) to channel their Corporate Social Responsibility (CSR) funds toward the treatment and rehabilitation of victims from the recent large-scale demonstrations in the country.
GenZ Movement Medical Expenses Coverage
This groundbreaking amendment to the existing CSR Guidelines for Banks and Financial Institutions, effectively updated in 2025, marks a vital moment where the financial sector directly steps in to support the nation’s healing process following social unrest. The directive specifically targets the injuries and the economic fallout resulting from what has been variously referred to as the ‘Gen Z’ or ‘Janajati’ movement protests, ensuring that the burden of recovery does not fall solely on the affected individuals and their families. This action underscores a pivotal shift in Nepali corporate governance, prioritizing social welfare and stability through targeted, post-crisis financial intervention.
Direct Medical and Rehabilitation Support from the CSR Fund
The core of the NRB’s recent amendment centers on two critical areas of social support: immediate medical assistance and long-term economic empowerment.
Covering Medical Expenses for the Underprivileged Injured
The central bank has explicitly permitted BFIs to utilize their dedicated CSR funds to cover the medical costs of individuals from poor and underprivileged backgrounds who were injured during the movement. This financial lifeline is strictly intended for treatment, medicines, and essential medical care provided at government hospitals. This targeted approach serves a dual purpose. Firstly, it ensures that the most vulnerable populations, often lacking sufficient resources for prolonged medical care, receive the help they desperately need. Secondly, by focusing on government hospitals, the measure aims for transparency and accountability in the utilization of the social responsibility funds, while directly supporting public health infrastructure. The directive also contains a crucial clause to prevent ‘duplicate costs,’ ensuring that the CSR funds are a true and necessary financial aid, not an overlap with other existing benefits or payments.
- Targeted Assistance: Financial coverage for medical expenses is specifically for poor and disadvantaged citizens.
- Mandate for Public Institutions: Funds must be used for treatment and medicines provided at government hospitals.
- Ensuring Non-Duplication: A mechanism is in place to ensure patients do not incur or claim duplicate costs for the same treatment.
This provision significantly broadens the scope of permissible CSR spending, which traditionally focused on areas like public education infrastructure, general health camps, and environmental initiatives, as outlined in the general CSR Guidelines 2082. By addressing a unique and immediate social crisis, the NRB demonstrates regulatory flexibility guided by pressing humanitarian needs.
Economic Empowerment for Families of the Deceased
Beyond immediate medical aid, the NRB’s circular introduces a long-term, restorative measure aimed at addressing the economic vacuum created by the loss of life during the demonstrations. The directive permits the use of CSR funds to enhance the income-generating capacity of families of those who were tragically killed (often referred to as ‘martyrs’) during the protests, provided these families do not have other direct employment sources.
The Pathway to Skill Development and Self-Sufficiency
The financial support in this category is directed towards skill-based training. Specifically, CSR funds can now be used to cover the expenses for skill enhancement training programs. These programs must be provided by the Government of Nepal or by other institutions that have been officially approved by the government for offering such training.
- Focus on Sustained Income: The objective is not merely a one-time grant, but an investment in future economic self-sufficiency.
- Training and Skill Enhancement: Funds cover the cost of skill-based training for family members lacking stable employment.
- Ensuring Credibility: Training must be provided by government-run or government-approved institutions, adding a layer of quality assurance and accountability.
This inclusion is particularly strategic as it aligns with the broader mandate of CSR to uplift underprivileged and marginalized communities, a core principle that has been reinforced by the NRB in its recent revisions following calls for stricter and more focused CSR spending. It provides a means for the financial sector to contribute to social stability by mitigating the economic hardship that can perpetuate cycles of poverty and unrest.
Context: The Shift in CSR in Nepal
The decision to allocate CSR funds for the victims of the recent agitation reflects a continuing evolution in Nepal’s CSR landscape. Banks and financial institutions in Nepal are mandated to allocate at least one percent of their annual net profit to a dedicated CSR fund. Over the past few years, the central bank, and even the Supreme Court, have emphasized making CSR spending more transparent, effective, and targeted towards poverty alleviation and the most disadvantaged sections of society. The initial CSR Guidelines 2081 BS, which were then revised into the CSR Guidelines 2082 BS (through a first amendment), laid the groundwork for prioritizing core sectors like health, education, and environment, along with poverty-focused fellowships and community support. The most recent amendment, which focuses on the ‘Gen Z’ or ‘Janajati’ movement victims, represents a second amendment to the 2081 guidelines, signaling the regulator’s proactive approach to national crises. The movement, which primarily involved youth and was fueled by anti-corruption sentiment and economic frustrations, severely impacted business confidence and highlighted the deep-seated socioeconomic challenges in the country. This CSR amendment is, therefore, a targeted public policy response, leveraging the considerable resources of the financial sector to address a sociopolitical emergency and promote social reconciliation. By linking corporate responsibility to national stability and humanitarian aid in a specific, post-agitation context, the NRB is setting a powerful precedent for how the financial sector can be a force for social good during times of national distress.
For More: GenZ Movement Medical Expenses Coverage