somersby

Commercial banks get nine more months to increase paid-up capital

File image: Nepal Rastra Bank

Kathmandu, July 16

The central bank of Nepal is allowing commercial banks of the country to increase their paid-up capital to make it minimum Rs 8 billion in next nine months.

Earlier, the Nepal Rastra Bank had directed the banks to meet the standard by the end of fiscal  year 2016/17.

But, in the monetary policy issued for the new fiscal year 2017/18, which begins today, the NRB has implicitly opened up a way for the financial institutions to enjoy more time.

The policy says banks should mention their paid-up capital in the ‘notes to account’ to be submitted by them to the NRB. The notes can be submitted before the end of the ninth month of the new fiscal year, says NRB spokesperson Narayan Prasad Paudyal.

The policy, however, has warned that those failing to meet the requirement will be barred from issuing distribution of cash dividends and bonus shares and extending branch services. Likewise, the central bank can impose a ceiling on their loan issuance and deposit collection, or force them for merger, the policy states.


Published on July 16th, Sunday, 2017 3:53 PM


Download Onlinekhabar App. Android click here & IOS click here . Keep in touch with us on Facebook, Twitter & YouTube.

Related News Nepal Rastra Bank issuing new five-rupee note Tuesday Account payee cheque must for transactions above Rs 1 million as new fiscal year begins Monetary Policy 2017/18: Four ways it will affect your personal finance

No Comments

Leave a Reply

Your email address will not be published.

You May Like This