Kathmandu. Banks and financial institutions will now have to spend at least 60 percent of the amount deposited in the Social Responsibility Fund (SRF) in the current fiscal year (FY).
Nepal Rastra Bank has amended the integrated directive issued for A, B and C category banks and financial institutions to establish such a provision. Now, banks and financial institutions licensed by the Rastra Bank will have to make arrangements to spend at least 60 percent of the amount deposited in the fund from profits within the same fiscal year, as soon as the financial statements of each fiscal year are approved.
The board of directors of banks and financial institutions will have to formulate and implement procedures for carrying out various activities related to corporate social responsibility and operating the fund. The procedure should include at least the following topics:
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- ##Authority to spend the funds,
- ##Basis for program selection and proposal evaluation,
- ##Basis for program diversification,
- ##Basis for geographical distribution of the program,
- The basis for selecting a non-self-interest program.
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## Areas where CSR can be spent
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## ##The amount collected in the CSR fund can be spent in the following areas.
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## ##Education
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- ##Construction, repair and reconstruction of physical infrastructure of government and community schools and colleges.
- ##Scholarships given to meritorious students from poor, backward classes and disabled students studying in schools and colleges.
- Educational materials including computers, projectors, interactive smart boards, white or black boards, books, and other furniture, fixtures, and other materials required for schools will be distributed to government and community schools and colleges.
- Provision of clean drinking water, construction or improvement of toilets, sanitary pad dispensers, sanitizer dispensers, mask dispensers, basic health and hygiene materials including first aid in government and community schools and colleges.
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inline_tags_PLACEHOLDER_25##Healthinline_tags_PLACEHOLDER_27
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## Humanitarian Assistance and Relief
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- T. G. G. Provision materials including clothes, food, medicine, tents, utensils, etc., to be distributed to victims of natural disasters including earthquakes, floods, landslides, storms, fires.
- ##Support to social organizations such as old age homes, children’s homes, organizations that rescue and protect victims of human trafficking, and other organizations approved or recognized by the relevant government bodies, other than those established commercially.
- ##Expenses incurred in providing nutritious food to malnourished children, pregnant and lactating women.
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## ##Environment
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- ##Urban forest development and tree planting in public places after obtaining necessary approval from the relevant body.
- ##Informative materials providing information about the environment to be placed in public places after obtaining necessary approval from the relevant body.
- #Production and dissemination of awareness-raising materials to increase public awareness about environmental protection.
- #Garbage bins placed in public places for waste collection.
- #Work related to the conservation of endangered wildlife.
- #Environmental projects to reduce and control pollution.
- ##Infrastructure construction to be done in rural areas to reduce environmental impact.
- ##Infrastructure construction to be done to treat polluted river water.
- ##Work to be done to manage waste accumulated in the Himalayas.
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inline_tags_PLACEHOLDER_25##Financial Literacy##inline_tags_PLACEHOLDER_27
- Financial awareness audio visual content production and broadcasting expenses.
- #Production and distribution of educational materials to enhance financial literacy.
- #Collaboration with provincial and local bodies for financial literacy.
- #Collaboration with schools and colleges for financial literacy.
- #Work to be done to enhance financial literacy in target communities who are not familiar with the banking sector.
- ##Training program to be conducted to increase awareness regarding digital financial transactions.
- ##Promotional expenses to be incurred to increase public awareness regarding cashless transactions, use of technology and electronic transactions.
- ##Expenses incurred in conducting training programs of two days or longer duration for target groups as per the Financial Literacy Framework issued by Nepal Rastra Bank.
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## ##Sustainable Development Goals
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- ##Sustainable Development Goals 2016-2030 are spending that will support the achievement of the targets set in the areas identified by the 2016-2030 Agenda.
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## ##Other##
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- ##Expenditure on construction, reconstruction and maintenance of traffic management and passenger waiting areas, street lights, public toilets, etc.
- ##Expenditure on construction, reconstruction and maintenance of passenger waiting areas, street lights, public toilets, etc.
- ##In the accounts opened under the ‘Open Bank Account Campaign’, Rs. Expenditure amount up to 100 (one hundred).
- ##Amount to be provided to the National Innovation Center.
- ##Investment in sports-related infrastructure necessary for the development of the sports sector.
- ##Expenditure in other areas specified by the National Bank from time to time.
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## ##Regional Expenditure
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- ##Banks and financial institutions, while spending on corporate social responsibility, should not be limited to a single geographical area and subject (such as education, health, etc.) but should make arrangements to spend in a fair manner within their geographical areas of operation, prioritizing life-saving, public welfare, and charitable work.
- Commercial banks and national-level financial institutions will have to spend a minimum of 10 percent of the amount allocated to the Corporate Social Responsibility Fund in each province.
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## The following expenses incurred by a licensed organization that does not fall under corporate social responsibility cannot be included in expenses under corporate social responsibility:
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- ##Marketing campaigns carried out with the aim of promoting the organization’s brand and expanding the market.
- Sponsorship of various programs, support for political party programs.
- Expenses incurred on activities such as profit-making activities, paid programs, rallies and advertisements.
- ##Expenses incurred by founding shareholders, members of the board of directors and senior management level officials in related organizations. ##inline_tags_PLACEHOLDER_8
- Expenses incurred for business expansion.##inline_tags_PLACEHOLDER_8
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Circular-10-CSR-for-ABC-Final
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