Nepal Rastra Bank has circulated directives to banks and financial institutions to implement the revisions announced in the first quarterly review of the current fiscal year’s Monetary Policy. The update allows loan restructuring for businesses hit by floods and landslides in districts such as Ilam until mid-March 2026, provided lenders recover at least 10 percent interest. The central bank has also capped non-purpose personal loans, including overdrafts, at Rs 10 million, and reduced the interest rate on refinance and similar credit facilities for licensed institutions from 6 percent to 5.75 percent.
