The Nepal Rastra Bank (NRB) has unveiled a monetary policy for the current fiscal year with the target of encouraging the microfinance institutions to merge. The monetary policy has a priority of protecting clients’ interests and addressing complaints regarding the service of such institutions.

NRB Governor Maha Prasad Adhikari said necessary regulatory arrangements would be placed, keeping the protection of clients’ interests based on international good practices in priority.

The monetary policy has made arrangements for a contemporary review of regulatory arrangements related to interest rates on loans and service charges taken by microfinance institutions, as well as rescheduling the loan by paying certain percent of interest for customers who are unable to pay their loans to the microfinance institutions due to the situation.

Further arrangements would be made to encourage those microfinance institutions working by limiting their scope of work in any certain province and place, reads the monetary polic