Nepal Rastra Bank is finalizing changes to loan classification, credit loss management, and priority sector lending guidelines. A committee has proposed extending the period before priority and production-sector loans are classified as non-performing. The review draws on practices in India and Bangladesh and aims to differentiate loans by sector, including agriculture, MSMEs, IT, and tourism. The revisions, expected in the third quarter of the current fiscal year, are intended to improve risk management while supporting targeted credit growth.
