Kathmandu, December 2 — Nepal Rastra Bank has released the first quarterly review of the Monetary Policy for the current fiscal year 2082/83. The review includes major changes in interest rates and loan limits for banks and financial institutions.
According to the update, the Standing Liquidity Facility (SLF) rate, which is the upper limit of the interest rate corridor, has been reduced to 5.75% from 6%. The main policy rate used by the central bank has also been lowered to 4.25% from 4.5%. The Standing Deposit Facility (SDF) rate, which is the lower limit of the corridor, remains unchanged at 2.75%.
Nepal Rastra Bank plans to keep the main policy rate balanced at the center of the interest corridor in the future. Rules on Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have not been changed.
The rule that forced banks to keep the interest rate on institutional fixed deposits at least 1% lower than personal fixed deposits will now be removed. Banks can also increase the personal overdraft loan limit to Rs. 1 crore from Rs. 50 lakh.
Microfinance institutions can now issue secured loans up to Rs. 15 lakh, increased from Rs. 7 lakh. The limit on loans against land or property from microfinance has also increased to Rs. 15 lakh from Rs. 7 lakh. Borrowers facing payment problems will also be given options to adjust their loan repayment plan.
Loans for businesses affected by natural disasters, including Ilam, can now be restructured one time. Banks will have to charge at least 10% interest for this loan restructuring support.
Banks can now merge or adjust their branches in metropolitan areas without extra approvals. Digital payments are growing, and many bank branches are already in metro cities, so branch merging will now be easier.
Nepal Rastra Bank will also introduce a new Anti-Bribery and Corruption Policy for banks. This will help improve transparency, accountability, and better governance.
Monetary Policy 2082/83 Key Update Summary
NEPAL RASTRA BANK Monetary Policy Quarterly Review Highlights
| Sector | Updated Provision |
|---|---|
| Interest Rate Corridor (Upper Limit – SLF) | Reduced from 6% to 5.75% |
| Main Policy Rate | Reduced from 4.5% to 4.25% |
| Interest Corridor (Lower Limit – SDF) | No change, stays at 2.75% |
| CRR & SLR Rules | No changes made |
| Institutional vs Personal Fixed Deposit Interest Rule | Rule removed |
| Personal Overdraft Loan Limit | Increased from Rs. 50 lakh to Rs. 1 crore |
| Microfinance Secured Loan Limit | Increased from Rs. 7 lakh to Rs. 15 lakh |
| Microfinance Loan Against Property | Increased to Rs. 15 lakh |
| Loan Repayment Plan | Can be changed if borrower faces issues |
| Disaster-Hit Business Loan Restructuring | One-time restructuring with min 10% interest |
| Bank Branch Merging in Metro Cities | Now allowed |
| Anti-Bribery & Corruption Policy | New policy to be introduced |