Banks and financial organisations are no longer allowed to send out random warnings to debtors who have not paid their loans as a result of the new law.
The ability to issue a public notice for debt recovery will now be limited to six months of non-recovery of loans for banks and financial institutions under the new rules. The central bank came to an agreement with BFIs today by releasing a common guideline to all financial institutions. In order to collect a loan that has been in circulation for more than one year, at least six months should have transpired between the time of the loan’s initial disbursement and the time of the public notice and collateral auction proceedings.
In accordance with the new guidelines, the Nepal Rastra Bank has also required banks and financial institutions to make their earnings per share available to the public on their websites. Banks and financial institutions will now be required to report their earnings per share figures on an annual basis.
The National Reserve Bank has also mandated that financial institutions (BFIs) maintain a reserve fund equivalen
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