Limit of Rs. 200 million on institutional share mortgage loans abolished
Monetary policy has not brought any new arrangements in share mortgage loans to individuals.
KATHMANDU: Nepal Rastra Bank (NRB) announced today the monetary policy for the current fiscal year 2081/82 and canceled the maximum limit set for institutional share mortgage loans.
Monetary policy has not brought any new arrangements in share mortgage loans to individuals.
“The Governor of NRB, Maha Prasad Adhikari, announced that financial institutions and banks will impose a maximum limit of 200 million rupees on margin trading loans to institutional investors established with the primary objective of facilitating easy and organized investment in the capital market amid circumstances where unorganized trading could not be avoided.”
The monetary policy mentions that Nepal Rastra Bank (NRB) has recently provided consent to 34 brokerage firms to encourage the concept of margin trading by gradually reducing direct loan investments from banks and financial institutions in the bond market.
