Kathmandu: As per the first quarterly review of the monetary policy of the Fiscal Year 2077/78 BS made public by Nepal Rastra Bank, 207 banks and financial institutions have been involved in the merger and acquisition process and 50 institutions have been established.

During this period, the licenses of 157 organizations have been revoked. In the first quarter of the current Fiscal Year, 12 MFIs have been involved in the merger process and six MFIs have been established.

The credit / resource mobilization ratio (CCD ratio) required by banks and financial institutions to revive the economy affected by COVID-19 has been fixed at 85 percent by July 2012. The credit-resource mobilization ratio of banks and financial institutions stood at 72.9 percent in mid-October 2012/13. The deadline for commercial banks to issue minimum 25 percent of their paid up capital by mid-July 2077 BS has been fixed as mid-July 2079 BS. Banks and financial institutions have mobilized Rs. 57.68 billion through bonds till September 2012/13.

NRB has postponed the licensing of microfinance institutions. Also, the licensing process of microfinance financial institutions in the process of licensing has been canceled. The maximum interest rate charged by MFIs to customers is 15 percent. Provision has been made for licensed 'A', 'B', 'C' and 'D' class banks and financial institutions to charge more than 0.5 percent service fee on loans disbursed to microfinance institutions as poor class loans. Provision has been made for the MFIs not to deposit and renew the term deposits in banks and financial institutions for a period of more than 3 months except for long term funds established for certain purposes. Provision has been made to publish the financial statements of the Fiscal Year 2077/78 in accordance with the Nepal Financial Reporting Standards for the institutions that are approved to disburse wholesale loans and collect deposits from the public.

Payment System Payment system development indicators have been started to be published on a monthly basis. Provision has been made to revoke the licenses of the organizations licensed as payment service providers if they do not reach at least 300,000 customers by mid-July 2078 BS and the average number of monthly transactions does not reach at least 600,000.