Kathmandu, March 28
Nepal’s central bank has warned of action against commercial banks if they fail to expand their services to newly formal local government units (municipalities and rural municipalities) by the end of this fiscal year in mid-July.
As per the directive issued by the Nepal Rastra Bank, the banks have to reach 359 local units by mid-July. They have to meet the mark of 243 local units by mid-May.
The central bank says those violating the directive will be booked under the NRB Act.
“Some banks are not interested to go to the local level,” NRB spokesperson and executive director Narayan Paudel says, “But, they have to go.”
Among 753 local units of the country, only 359 have banking facilities now. The NRB has assigned different banks to open branches in specific local units.
