Himal Press 
KATHMANDU: Nepal Rastra Bank (NRB) has revised its guidelines regarding working capital loans.
Industrialists and businesspeople have been protesting in various parts of the country, calling for a revision of the guidelines. The protests were sparked by NRB Governor Maha Prasad Adhikari who, during a meeting with businesspeople, informed them that the central bank would not revise the guidelines. The protests were postponed after the newly-appointed Minister of Finance, Bishnu Poudel, expressed a commitment to address their demands.
Previously, then Finance Minister Janardan Sharma held talks with NRB Governor Maha Prasad Adhikari regarding the guidelines. But Adhikari refused to make any changes. According to the new provisions in the guidelines, borrowers with loans above the approved limit will have to repay the excess amount in five installments by mid-June 2025.
The new arrangement, however, will not apply to working capital loans of up to Rs 10 million. The previous limit was Rs 5 million. Borrowers, who have taken loans above the specified limit, will now have to repay 10% by mid-June 2023. They will then be required to repay 20% every six months thereafter, with the final installment being 30%.
According to the new provision, banks are no longer able to renew short-term loans. They can, however, term loans by classifying them as 3-10 years. The new guidelines have also reduced the requirement for submitting financial statements of five fiscal years to obtain working loans to three fiscal years. Prime Minister Pushpa Kamal Dahal, Minister of Finance Bishnu Poudel, and NRB Governor Adhikari discussed the matter on Wednesday morning.
The new guidelines replace the previous guidelines issued on October 18.
