Kathmandu. Nepal Rastra Bank has started implementing monetary policy. Last Sunday, the Central Bank issued the monetary policy for the current financial year 2080/81. The central bank has started implementing the measures adopted in the same monetary policy. The central bank mentioned that it will review the risk weight of share mortgage loans, real estate and auto loans. The National Bank has amended the provisions related to the risk burden of loans.

The Bank and Financial Institutions Regulation Department of the National Bank has revised/amended the Integrated Guidelines 2079 issued to banks and financial institutions of categories A, B and C. Now the risk burden of share securities up to 50 lakh rupees will be 100 percent. Earlier, there was a provision of 100 percent risk weighting only for share mortgage loans up to 25 lakh rupees. However, now the National Bank has informed through instructions that the risk burden will be 100 percent for loans up to 50 lakh rupees.

According to Rashtra Bank, it has maintained 150 percent risk weight on share mortgage loans above 5 million rupees. On the other hand, provision has been made for 100% risk load in hire purchase and auto loan up to 25 lakh rupees. However, the risk burden of hire purchase and auto loans above 25 lakh rupees has remained at 150 percent. The same arrangement existed earlier.

Similarly, it is mentioned in the instructions of the National Bank that the risk burden will be maintained up to 100 percent in land mortgage loans for the acquisition of land for various institutions and development projects.