Nepal Rastra Bank on Wednesday issued instructions to banks and financial institutions for the implementation of the upcoming monetary policy arrangements. In which, up to 80 percent of the loan can be obtained against the collateral of shares of strong companies, up to 80 percent of the value of the loan can be obtained for the purchase of large electric passenger vehicles, and construction entrepreneurs who have been unable to repay the loan due to circumstances have been given facilities such as loan rescheduling and restructuring. 

The directive states that when taking a loan from banks and financial institutions by pledging shares of companies with good financial condition, a loan of up to 80 percent of the stipulated value can be obtained. ‘A method should be determined so that the loan-to-value ratio of shares of companies with high valuation based on the strength assessment can be increased by a maximum of 10 percentage points,’ the directive states. 

To determine the strength of a company, indicators such as the size of paid-up capital, minimum period of securities listing, status and period of profit and dividend distribution, credit rating, compliance with regulatory provisions, and whether or not a regular general meeting has been held have been prescribed. The bank should place such information on its website. 

‘Once a loan has been disbursed, no additional loan limit can be set or additional loans can be provided based on the re-evaluation of the shares secured by such a loan,’ the directive states.

Construction entrepreneurs of projects whose construction has begun after ensuring resources from a public body will be able to get loan rescheduling and restructuring facilities. The Rastra Bank has provided such facilities for the implementation of monetary policy provisions. 

The directive provides that in the case of loans disbursed to construction entrepreneurs whose project construction work has been completed or is in progress but whose payments are yet to be received, the bank may, upon the request of the borrower, analyze the cash flow and recover at least 10 percent of the interest to be paid based on necessity and justification, and subject to the following conditions. 

Such rescheduling or restructuring must be completed by mid-Asoj 2083. As per the directive, a minimum loan loss provision of 5 percent should be maintained for loans rescheduling or restructuring. However, in the case of loans classified in the non-performing category, the previous loan classification and loan loss provision should be maintained accordingly. The directive states that the documents pending payment should be obtained from the concerned public body.

Banks and financial institutions will be allowed to provide loans up to 80 percent of the vehicle price for the purchase of large passenger electric vehicles. Accordingly, while disbursing loans and providing loans to replace damaged vehicles and means of transportation used commercially in industries and commercial establishments directly affected by the Gen-G movement, the loan-to-value ratio can be maintained up to 80 percent. Currently, there is a provision that loans can be provided only up to 60 percent of the price.

‘While disbursing loans for large passenger electric vehicles used as public transport and providing loans to replace damaged vehicles and means of transportation used commercially in industries and commercial establishments directly affected by the Gen-G movement, loans will be provided up to 80 percent.’

The price ratio can be maintained up to 80 percent,' the directive states. The Rastra Bank has made arrangements for banks and financial institutions to take a self-declaration of the account holder's national identity card details through a mobile application or other appropriate means by mid-Asoj 2083. 

In the case of Nepali citizens who have obtained a national identity card, the national identity card or national identity card number of the concerned account holder will have to be updated by taking a mobile application or other appropriate means by taking a mobile application or other appropriate means.

In the case of Nepali citizens who have not obtained a national identity card, the Rastra Bank has asked to make arrangements to inform the concerned account holder every 6 months through a mobile application or other appropriate means to update the customer identity by taking a national identity card.

Nepali citizens living abroad who have to open an account with a licensed institution online while living abroad can open an account with other necessary documents other than a national identity card or national identity card number.

In relation to the account opened in this way, the account holder will have to take and update the details of the national identity card within 35 days of returning to Nepal. There is a provision for citizens who are unable to take care of themselves, disabled, helpless, and children under the age of 16 to open a bank account and conduct transactions by attaching a national identity card or other necessary documents other than the national identity card number.