Monetary Policy encourages microfinance institutions for merger

Kathmandu, July 26: The Nepal Rastra Bank (NRB) has unveiled a monetary policy for the current fiscal year with a target of encouraging microfinance institutions to merge.     

The monetary policy has a priority of protecting clients' interests and addressing the complaints regarding the service of such institutions.     

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

The monetary policy has made arrangements of contemporary review on regulatory arrangements related to interest rates on loans and service charges taken by microfinance institutions, as well as rescheduling the loan by paying a certain per cent of interest for customers who are unable to pay their loans to the microfinance institutions due to situation.     

Further arrangements would be made to encourage those microfinance institutions to work by limiting their scope of work in any certain province and place, according to the monetary policy. (RSS)