Kathmandu. Nepal Rastra Bank has formulated a policy to make it easier for foreign banks and financial institutions to open branches in Nepal. NRB has reduced the limit of paid-up capital by issuing Foreign Bank Branch Permit Policy, 2022 on Wednesday.

According to this policy, foreign banks and financial institutions wishing to open branch offices in Nepal will now need to have paid up capital of USD 20 million or equivalent. At present, the paid up capital of commercial banks in Nepal should be at least Rs. 8 billion. Even if foreign banks and financial institutions wanted to open branches, they needed the same working capital as Nepali commercial banks.

The arrangement has been made to make it easier for foreign banks and financial institutions to open branches in Nepal, said the Department of Banks and Financial Institutions Regulation, NRB.