Monetary Policy encourages microfinance institutions for merger

The Nepal Rastra Bank (NRB) has unveiled a monetary policy of current fiscal year with a target of encouraging the microfinance institutions for merger.

The monetary policy has a priority of protecting clients’ interest addressing the complaints regarding service of such institution.

NRB Governor Maha Prasad Adhikari said necessary regulatory arrangements would be placed keeping the protection of clients’ interest based on international good practice in priority.

The monetary policy has made arrangement of contemporary review on regulatory arrangement related to interest rate on loan and service charge taken by microfinance institutions, as well as rescheduling the loan by paying certain percent of interest for customers who are unable to pay their loans to the microfinance institutions due to situation.

Further arrangement would be made to encourage those microfinance institutions working by limiting its scope of work in any certain province and place, reads the monetary policy.