Nepal Rastra Bank (NRB) has revised its collateral acquisition rules, now requiring banks and financial institutions to conduct at least three unsuccessful public auctions before taking over non-banking assets. Previously, assets could be acquired after two failed auctions. The central bank has also removed the provision mandating 100% provisioning from the date of asset acquisition, easing the regulatory burden on lenders. Under the new rules, collateral must be valued at either the prevailing market price or the outstanding loan amount, whichever is lower. These measures are intended to strengthen asset recovery while providing operational relief to banks.
