May 10, Kathmandu – Banks and financial institutions implementing government programs will no longer need to include loans and advances issued under these programs in interbank transaction calculations. According to the directive issued by the central bank on Wednesday, transactions related to government initiatives are exempted from interbank transaction classification.
As explained by the central bank, loans and advances extended between banks and financial institutions for government programs will not be treated as regular loans or advances, but solely as interbank lending or advances. However, such loans provided during program implementation will be considered outside regular interbank transactions. Furthermore, the maximum duration allowed for interbank advances is limited to seven days.
Specifically, loans exchanged between banks and financial institutions in connection with Nepal Government programs supported by international donor agencies will not be recognized by the central bank as interbank transactions or advances. Detailed records of these programs must be made available to the central bank’s Banking and Financial Institution Regulation Department and the respective supervisory divisions, as mandated by the central bank.
Additionally, the central bank has instructed banks and financial institutions to register as institutional users in the ‘Mero Kitta’ system for obtaining land-related services (such as land maps, field books, and plot register prints) from the Survey Department, and to make related revenue payments online. Infrastructure Development Bank and microfinance institutions, among others, have also been directed to enroll as institutional users in the ‘Mero Kitta’ platform.
