Economy, Market Watch

NRB not to issue licenses for banks

Published by Octron on August 6, 2009

Nepal Rastra Bank has deferred licenses to open new banks and financial institutions for am indefinite period.
A NRB press release issued on Tuesday stated that the central bank was going to review the existing licensing policy and procedures.

“The NRB has postponed registering application for the establishment of new banks and financial institution until it receives the study report on licensing policy,” said the statement

The central bank has however made it clear that it would entertain the application to open ‘D’ class micro-finance institution as subsidiary company of ‘A,’ ‘B,’ and ‘C,’ class financial institutions. The monetary policy for fiscal year 2009/10 has provisioned that the banks and financial institutions can establish ‘D’ class financial institutions to provide credit to deprived sectors. NRB has however clarified that it would go ahead with the licensing procedures if the applicant has already collected five percent of paid up capital and published public notice regarding the establishment of new financial institution. But, those who just applied will have to wait until the NRB takes further decision. “Such applicants can take back application fee and the application will be cancelled,” NRB said.

Source: Kantipur

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