Nepal Rastra Bank Announced Relief Measures For Industries Affected By Covid-19

Nepal, March 31, 2020

Nepal Rastra Bank (NRB) has declared concessions to the areas affected by the coronavirus. NRB has realized that the private sector contributing to the economy is in trouble now. They have rescheduled loan repayments and will prioritize refinance facilities for small-scale industries.

The 19 directives given by the nation are given below:

1. The mandatory cash reserves required to be maintained by the A, B and C class institutions licensed by Rastra Bank have been fixed at two percent of the total deposit liability.
2. The interest rate (bank rate) provided by the Rastra Bank to the institutions licensed under the prevailing Act has been set at 5 percent.
3. The interest rate corridor has been fixed as the upper limit of the fixed liquidity facility rate of 5 percent, the policy rate as the rate of interest is 5 percent and the lower limit deposit rate is 2 percent.
4. The limit of the refinancing fund established by the bank will be set at Rs. 2 billion.
5. Loans to be repaid in the month of March will be paid monthly, quarterly (even credit cards) till mid-June. No interest, penalties and other fees will be charged for such installments.
6. Interested people who want to repay the loan will have to pay up to 5 percent on the interest amount and will have to pay the loan. Thus, discounting of interest will not be less than the base rate.
7. (4) Loans to be renewed by mid-March will not be compulsory to be kept under micro-monitoring till mid-March.
8. Payment period for short term loans of all current capital types can be extended up to 3 days in the given month.
9. If the tourist and transport sectors, who are regularly paying interest and interest by mid-January, demand short-term loans, loans will have to be disbursed within five days. Accepting this limit will not allow you to charge more than 0.25 percent.
10. If there is a demand for loans for the purpose of facilitating the import and sale of essential goods and medicines, medicines, food items, including listed and recommended health care departments used in the prevention, control, and treatment of Covid 49, the loan will have to be disbursed within five days.
11. To make the electronic business more effective and to increase access to more and more subscribers, promptly accept the requests received through the customer’s telephone and email by managing risk for the tasks required to do online transactions such as service enrollment, password reset, PIN reset, card renewal and encourage business via electronic means. Will have to There will be no charge for such services until mid-June.
12. With the approval of the Rastra Bank, interest can be capitalized up to 1 st January or the middle of April till the interest period.
13. The amount to be paid by the bank issuer to the beneficiary may be paid within 5 business days from the date of termination of the order issued by the Government of Nepal under the Infectious Disease Act, 1. Also, if the customer requests to renew the bank bail during this period, it will have to be renewed for such a period without charge.
14. The amount contributed by the banks and financial institutions to the Corona Infection Prevention and Control and Treatment Fund established in the Union, the State can be calculated in the Social Responsibility Fund (CSR).
15. Loans flowing to private healthcare providers who want to expand and upgrade services, even supporting the treatment of Covid-29, can be counted as a priority area.
16. In view of the overall impact on the financial system, no loss will be incurred if the regulatory/supervisory ratios that have to have complied within the first 3 months are not complied with.
17. Priority will be given to small and medium scale entrepreneurs affected by Covid-19 to provide refinancing facilities from Rastra Bank. Such refinancing facility will also be provided for an ongoing capital loan
18. The Counter Cycle Buffer has been postponed as provided in the Capital Accuracy Framework-1
19. An arrangement will be made to provide the concessional loan within 7 days of the applicant requesting to operate an industrial business after receiving the concessional loan after the risk of infection has not been obtained by the person who is not allowed to go to foreign employment.