Nepal Rastra Bank expands priority lending to tourism, IT and export sectors

Nepal Rastra Bank has revised its priority sector lending policy to include tourism, information technology and industries based on domestic raw materials. Under the updated guidelines, commercial banks must allocate 10 percent of total lending to agriculture by mid-January 2027 and 20 percent to the newly defined priority sectors. Development banks and finance companies are required to maintain 20 percent and 15 percent lending, respectively. The central bank aims to channel excess liquidity into productive sectors while allowing flexibility for institutions meeting agriculture targets.