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December 25: The central bank of Nepal has revised legal provision to allow commercial banks of Nepal to take loan from Indian banks and financial institutions.
Nepal Rastra Bank said that it made the new arrangement so that Nepal's commercial banks could take loan from India's banks to float the loan here in tourism, agriculture and micro finances.
The foreign exchange department of the central bank issued a notice on Tuesday (December 25), informing that Nepal’s commercial banks could bring loan from Indian banks in order to float in the country, according to Rastriya Samachar Samiti (RSS).
The state-run news agency of Nepal reported that if the loan is received in convertible foreign currency while taking loan in Indian currency, it must be limited within 50 percent of the primary capital.
However, the commercial banks are not permitted to take loan for investment in hydropower, solar energy, wind energy, transmission line, tunnel way, airport, cable car, bridges and other physical infrastructures.
The banks meeting the capital ceiling fixed by the Nepal Rastra Bank can take loans from the Indian banks based on the decision of their board of directors. However, such banks should be clean without being blacklisted for any international transactions, the central bank said. Similarly, the foreign loan needs to be paid within one to five years.
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<p>The foreign exchange department of the central bank issued a notice on Tuesday (December 25), informing that Nepal’s commercial banks could bring loan from Indian banks in order to float in the country, according to Rastriya Samachar Samiti (RSS).</p>
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<p>Nepal Rastra Bank said that it made the new arrangement so that Nepal's commercial banks could take loan from India's banks to float the loan here in tourism, agriculture and micro finances.</p>
<p>The foreign exchange department of the central bank issued a notice on Tuesday (December 25), informing that Nepal’s commercial banks could bring loan from Indian banks in order to float in the country, according to Rastriya Samachar Samiti (RSS).</p>
<p>The state-run news agency of Nepal reported that if the loan is received in convertible foreign currency while taking loan in Indian currency, it must be limited within 50 percent of the primary capital.</p>
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