Nepal Rastra Bank clears confusion regarding deferring payments till the next quarter; suggests timely payment to those who can

Nepal Rastra Bank (NRB) had issued a circular regarding the relief provided to the customers of banks and financial institutions. It included deferring payments to banks to the next quarter, i.e. payment due in Chaitra end could be paid till Asadh end, 2077 without any extra charges or penalties.

However, there was some confusion regarding the same among the individual and institutional debtors. Clarifying the matter, the spokesperson of the NRB has said that the payments include monthly or quarterly interest or principal amount (including credit card charges) that is due will be deferred to the next quarter.

Higher officials of some commercial banks have suggested that clients who can pay the dues on time should do so for which some banks are willing to give upto 10% discount on the interest due. While some clients feel that there will be added pressure after the lockdown is lifted since payment of two quarters will be due to be paid in a shorter period of time.

The clients further suggested that the banks should revise interest rates and accept part payments in the coming quarters to curtail some pressure on debtors, adding that it will also take some time for the market to normalize after the lockdown is lifted.