Monetary Policy Encourages Mergers Among Microfinance Institutions
July 26, 2024 | Investopaper
In its monetary policy for the current fiscal year, Nepal Rastra Bank has outlined measures to encourage mergers among microfinance institutions. The policy emphasizes addressing customer complaints and protecting their interests as a top priority.
Governor Maha Prasad Adhikari highlighted that the policy is designed to safeguard customer interests based on international best practices, and necessary regulatory measures will be implemented to support this.
The policy also includes provisions for regular reviews of interest rates and service fees related to loans provided by microfinance institutions. It introduces a scheme to allow debt restructuring for clients who are unable to repay loans, involving the payment of a specific percentage of interest.
Additionally, the policy aims to encourage microfinance institutions that operate within specific regions or provinces by creating supportive arrangements.
