Loans of microfinance borrowers will be rescheduled

Releasing the monetary policy for the current fiscal year on Friday, the National Bank said that additional arrangements will be made to encourage microfinance financial institutions that operate within certain provinces or regions. Microfinance is covered under 6 topics in monetary policy. According to the Microfinance Bankers Association, microfinance is included in the monetary policy to facilitate both customers and institutions.

Addressing the complaints related to the services of microfinance financial institutions, it has been stated that the necessary regulatory arrangements will be made on the basis of international best practices to protect the interests of customers. Ram Bahadur Yadav, president of Microfinance Bankers Association, said that the principle of customer protection to manage customer complaints is excellent because it is said that Rashtra Bank will make a policy and implement it.

"Mergers and acquisitions between microfinance institutions and branches of the three will be encouraged," the monetary policy said. The National Bank has said that the regulatory arrangements related to interest rates and service charges charged by microfinance financial institutions will be reviewed from time to time. "Microfinance institutions are digital," the merger seeks to encourage. Not only the organization but also the branch can be merged," said Yadav, president of the association.

Overall, he said that the policy to facilitate the customers and institutions of the microfinance sector and move forward is welcome. The necessary arrangements for implementing NFRS in all microfinance financial institutions licensed by the National Bank are mentioned in the monetary policy.

Nepal Rastra Bank will coordinate with the government to create a separate mechanism for the regulation of cooperatives. On Friday, while announcing the monetary policy for the current financial year, the National Bank will coordinate with the government to create a separate mechanism. "It will be coordinated with the Government of Nepal to create the necessary laws for the regulation and supervision of savings and credit cooperatives," said the monetary policy.