Kathmandu. Nepal Rastra Bank (NRB) has provided relief to banks that have not been able to meet the minimum limit of lending in the specified sector.
The average loan investment in agriculture sector is 13.78 percent, energy sector 8.80 percent and small and medium enterprises 10.92 percent. Many of these banks have disbursed less than the limit. In such a situation, the Rastra Bank has given relief to the banks by extending the time.
Banks and financial institutions have also been given one more year for the minimum loan to be disbursed in the specified sector (agriculture, micro, domestic and small enterprise business, energy and tourism). Earlier, commercial banks were required to disburse at least 15 per cent of the total loan amount to the agriculture sector by June 2084. Now they have the facility to increase the minimum limit of 15 percent by June 2085. For this, a minimum of 11 percent loan will have to be disbursed to the agriculture sector by July 2082, 12 percent by July 2083, 13 percent by June 2084 and 15 percent by June 2085.
Banks have been demanding this. Governor Bishwanath Poudel has amended these policies by adopting flexibility.
Banks and financial institutions were required to disburse a minimum of 15 per cent of their loans to micro, domestic, small and medium enterprises (including loans less than Rs 20 million and directly disbursed to the underprivileged). Now the Rastra Bank has given one more year to provide such loans. According to the new arrangement, banks and financial institutions will have to meet the mentioned criteria by June 2085.
Commercial banks such as development banks and finance companies have got a deadline of 2085 from the Rastra Bank for the minimum loan to be disbursed in the directed sector. Earlier, the development bank had to provide a minimum of 20 percent of the total loan and credit to the agriculture, micro, domestic and small enterprises, energy and tourism sectors by mid-July 2084 and the finance company had to provide a minimum of 15 percent loan to the financial institutions of the class.
Entrepreneurs say that the economy will be dynamic if small and medium enterprises are targeted and facilitated. At present, most of these entrepreneurs are facing problems and the stakeholders have been demanding concessions.
