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BFIs Need No Prior Approval to Open Branch in Rural Area

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BFIs Need No Prior Approval to Open Branch in Rural Area
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September 28: Now onwards, Bank and Financial Institutions (BFIs) aspiring to start branches in other than urban areas do not need to take advance permission from central bank. Nepal Rastra Bank (NRB), issuing a circular on Tuesday, said that the BFIs are exempted from taking pre-approval while opening branches in areas other than metropolitan, sub-metropolitan and municipality centers.


However, BFIs need to notify the central bank about the branch opening decision taken by board of directors within 7 days.  Similarly, BFIs need to take pre-permission from central bank regarding closure or merger of all types of offices including central, branch or others. Likewise, the institutions registered in the districts that are badly affected by the last year earthquake besides Kathmandu valley need not take pre-permission from NRB while shifting the branch into the districts from outside.  

 

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