The National Bank issued the directive in a circular on Friday.
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Microfinance institutions will be able to use the money in the Customer Protection Fund to support the families of customers affected by natural disasters and accidents.
The National Bank issued a circular on Friday and gave the directive.
‘The amount deposited in the Customer Protection Fund can be used for collective benefit of customer members, to protect and restore the businesses of borrowers in trouble, and to support the families of customers affected by natural disasters/accidents,’ the circular states. ‘The said amount shall be spent only for the education and capacity development of customers and for school-level education, health and nutrition programs of customers’ children.’
A minimum of 50 percent of the amount deposited in the Customer Protection Fund from the profits of the previous fiscal year shall be spent in the next fiscal year. The amount spent in this way and the details thereof shall be clearly disclosed in the annual report of the institution. The unspent amount shall be airmarked and invested separately, and there is a provision to deposit the income from such investment in the same fund.
