6 points agreement between the government and Laguvitta Sangharsh Committee, a working group will be formed

Punaram (Maniram Gyawali), coordinator of the negotiation team on behalf of the protestors and Narayan Prasad Risal of the Ministry of Finance has signed on behalf of the government business team. The

consensus is this

Government of Nepal, under the coordinatorship of the head of the Financial Planning and Institution Coordination Division, the Negotiating Committee and the representatives of the Struggle Committee against Microfinance and Financial Exploitation formed to solve the problems in the field of Microfinance and Financial Exploitation reached an agreement on the following matters in the Ministry of Finance on 2080.12.02 today. Done .

1. Because microfinance financial institutions are registered and operating in accordance with company law, they have developed as profit-oriented organizations rather than service-oriented ones, and since the agitating parties have demanded that they should be made service-oriented organizations, what kind of policy and legal arrangements are required to operate such organizations as more service-oriented organizations, according to international practices and Requesting the Nepal Rastra Bank through the Ministry of Finance and the Government of Nepal to make recommendations regarding appropriate policy and legal arrangements after studying the international law as well.

2. Discussing the work done by Nepal Rastra Bank on solving the problems seen in the field of Microfinance Financial Institutions and making arrangements for timely improvement and effective implementation of the following issues and bringing the Microfinance Financial Institutions that do not comply with the said legal and policy provisions and the instructions of the National Bank under the scope of action in accordance with the prevailing law:

a) According to the instructions of Nepal Rastra Bank, strictly implement the provision that the microfinance financial institution can charge only the specified maximum interest rate and service fee from the borrower.

b) Effective implementation of the system of not giving collective loans beyond the specified loan limit and taking action to the extent of the law to the organizations that violate it.

c) Effective implementation of the rule that one borrower cannot take and give loans from more than one microfinance financial institution,

d) At the same time as taking a loan, without the permission of the borrower or forcing the borrower to deduct a certain percentage of the amount and deposit the amount in the savings account, At the same time as the loan investment, controlling actions such as requiring advance deposit of the installment amount .

e) Taking action against the microfinance financial institutions that act contrary to the instructions of Nepal Rastra Bank regarding the rescheduling and restructuring of loans in accordance with the prevailing law .

3. When disbursing loans, the Nepal Rastra Bank will arrange for related institutions to compulsorily follow the system of disbursing loans only by providing financial literacy and awareness to the borrowers.

4. Regarding the demand from the agitating party to maintain a single digit interest rate and one percent service charge, the government of Nepal through the Ministry of Finance will request Nepal Rastra Bank to study and submit a report regarding the policy arrangements to be adopted to reduce such interest rate and service charge and make it timely. ;

5. V.No. Due to the Great Earthquake of 2072, the blockade and the problem of Covid-19 and microfinance financial institutions have acted contrary to the procedures and instructions that should be followed during loan disbursement and collection, the principal, interest, fees, fines, blacklist and mortgage release of the borrowers who are unable to pay the installments on time, rehabilitation of the victims And to deal with issues such as loan waivers for real victims who have no basis to pay the loan (injured, disabled, chronically ill) and other issues requested by the agitating party to conduct an on-site study and submit a report with solution options within 60 days of the commencement of work. Forming a working group with the participation of representatives. Based on the recommendations of the working group's report, to carry out the necessary policy and legal reforms for the regulation and reform of microfinance financial institutions.

6.