Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) has directed banks and financial institutions to implement the reduced 100 percent risk burden on share mortgage loans.
The central government had amended the unified directive issued in the name of banks and financial institutions today and directed to maintain this provision in share mortgage loans.
Earlier, the risk burden was 100 percent for share mortgage loans up to Rs 5 million and 125 percent for loans above Rs 5 million. Nepal Rastra Bank (NRB) has directed banks to impose 100 per cent risk burden on all categories of share mortgage loans.
In the third quarter review of the current economic monetary policy released a few days ago, the risk burden of share mortgage loans was reduced to 100 percent. Rastra Bank has issued a circular to implement the same arrangement.
Similarly, banks will now have to implement the provision of keeping a minimum of 90 percent of the mandatory cash reserve. This arrangement was also brought by the central bank through the monetary review.
Earlier, there was a provision to keep the mandatory cash reserve at a minimum of 70 percent.
