Kathmandu. Nepal Rastra Bank has tightened the establishment of branches of microfinance financial institutions. According to the new arrangement, the NRB has made an arrangement through a circular on Sunday that the MFI should have two branches in Mofasal before opening a branch in Kathmandu Valley.

Earlier, it was only necessary to get approval from the National Bank. As per the existing arrangement, approval of NRB is not required to open a branch office in a local level ward without a branch of a MFI. However, prior approval of NRB is required to open branches in local level wards where there are no branches of financial institutions in Kathmandu Valley, Kathmandu Metropolitan City and Sub-Metropolitan City.

The NRB has made an arrangement to open at least two branches at the rural local level in Mofasal before opening a branch in Kathmandu Valley by modifying the same arrangement.