NRB unveils monetary policy for FY 2019/20; PAN mandatory for loan

Kathmandu / July 24: Nepal Rastra Bank unveiled Monetary Policy for the Fiscal Year 2019/20 on Wednesday that has paved the way for the establishment of branches of Nepali financial institutions in foreign countries.

While making public the Monetary Policy at a televised press meet in the capital, Governor Chiranjivi Nepal said that Nepali financial institutions including banks will now be allowed to open their branches abroad.

According to the policy, the banks no longer need to take prior permission from the central bank to open their branches within the country.

Governor Nepal said that those banks and micro finances that choose to be merged in the current fiscal year will be given additional incentives.

The central bank has also encouraged to the online payment system in its policy.

PAN number mandatory for loan above Rs 5m

Nepal Rastra Bank has made mandatory provision to possess PAN number for those seeking loans above Rs 5 million.

Now onward, bank and financial institutions are obliged to ask PAN number before issuing the loan, according to the monetary policy revealed on Wednesday. Earlier, an individual getting a bank loan of more than Rs 10 million needed to have a PAN number.