Thursday 4th June 2020

Live Updates: NRB Announces Relief Measures on ‘Bank Loans’

The NRB defers loan repayments, cuts interest rates, holds EMI payments and reduces CRR.
Business

Coronavirus

Government

News

 
Live Updates: NRB Announces Relief Measures on ‘Bank Loans’

The Nepal Rastra Bank (NRB) has initiated a number of relief measures to alleviate the burden of loan repayments for businesses and individuals impacted by COVID-19.

The NRB has instructed all the Banks and Financial Institutions (BFIs) to extend the repayment deadlines for all the loans from mid-April to mid-July.

The relief measures will be applicable for-

  • Home loans
  • Auto loans
  • Educational loans
  • Business loans
  • Credit card payments

Other prominent decisions by Nepal Rastra Bank

  • No deduction of EMI for outstanding loans until mid-July
  • No penal charges or interest for the outstanding loans
  • 10% waiver on interest payment for loans scheduled for mid-April
  • Reduction of Cash Reserve Ratio (CRR) for BFIs by 1 – 3 percent
  • Increase the size of the refinance fund to NPR 60 billion from NPR 50 billion

“The overall measures are positive. These decisions also aim to give a message that the central bank and the government is ready to ease liquidity and provide relaxation for those hit by the coronavirus pandemic,” said NBA President Bhuvan Kumar Dahal.

However, some financial experts claimed that the relief measures are not adequate to address the banking and financial tribulations incited by the coronavirus ‘pandemic’.

“This is an extraordinary situation which requires unconventional measures. However, the rate cuts announced by the NRB are not enough to address the current problem,” exclaimed Nara Bahadur Thapa, former Executive Director of the NRB.

[MUST READ: Education Loan in Nepal Eligibility]

“It should have cut the CRR by further one percentage point, suspend credit to core capital cum deposit (CCD) ratio for a year and introduced term repo of two years to make credit easier and accessible for businesses,” he added.

So far, Nepal has reported five coronavirus infection cases. However, all the cases have a travel history to various coronavirus infected countries.

The coronavirus, which first appeared in China, has spread to every county in the world and has infected 785,855 people while claiming 37,826 lives.

March 31, 2020 |

 
The buddha life journey and significance
 
 

 

Subscribe to our Newsletter

Sign up for more inspiring latest news, events, tourism, and more from Nepalisansar.

Read previous post:
Nepal Anti-Money Laundering Act
Nepal Collects NPR 207 Million ‘COVID-19 Fund’

The firms, individuals and organizations across Nepal are demonstrating their commitment to combat the coronavirus spread…Read more

Close