KATHMANDU, July 11: Nepal Rastra Bank (NRB) is set to remove the existing 15 percent cap on dividend distribution by microfinance institutions. This provision has been included in the newly announced monetary policy for the upcoming fiscal year on Friday.
Under the current provision, microfinance institutions are not allowed to distribute more than 15 percent annual dividend. However, this policy will now be reviewed.
Single borrower takes loan of Rs 5,217,834 from 17 microfinance...
The monetary policy also mentions that the criteria for target groups, loan eligibility, and borrower qualifications for microfinance institutions will be revised to ensure that loans reach the intended beneficiaries and are properly utilized.
Additionally, the policy states that the limits for priority sector and deprived sector lending by banks and financial institutions will also be studied and revised accordingly.
