Rastra Bank to provide ‘Schemes’ for the Banks to reach minimum capital requirement; Banks and Financial Institutions to get highly benefited
Fri, Apr 6, 2018 11:02 AM on Latest, Featured, External Media,
Rastra bank is set to come up with schemes for the banks and financial institutions unable to maintain their paid up capital as per the directives set forth.
Nepal Rastra Bank had asked the commercial banks to maintain its minimum paid up capital at Rs 8 arba increasing from the former capital of Rs 2 arba. The monetary policy of 2072 had also directed the national level development banks and national level finance company to maintain their paid up capital at Rs 2.5 arba and Rs 80 crore respectively.
The banks and financial institutions have been since trying various measures to comply with the decision of the Rastra Bank.
But as per the information received, Rastra Bank is set to bring favourable schemes for the banks and financial institutions who have not been able to gather the amount for capital increment. As per an official of the central bank, the banks will be able to convert those amounts (call in advance, share premium and capital reserve) into paid up capital which would be the part of the paid up capital in the future.
Currently, half dozen commercial banks and about a dozen of the development banks have failed to maintain their paid up capital as per the requirement.
The Rastra Bank had announced to take actions against the banks who will not be able to fulfill the requirement but it has now planned to help the banks to reach the required paid up capital.
