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NRB Raises Share-Backed and Personal Loan Limits in Monetary Policy Review

Nepal Rastra Bank has increased the ceilings for margin lending and personal overdraft loans while introducing new measures to strengthen banks' capital management.

Published By Share Gyan
NRB Raises Share-Backed and Personal Loan Limits in Monetary Policy Review

Nepal Rastra Bank (NRB) has announced higher lending limits for share-backed (margin) loans and personal overdraft facilities through its Annual Monetary Policy Review for FY 2082/83, aiming to improve credit access and support capital market activity. Under the revised policy, the maximum limit for personal overdraft loans has been doubled from Rs 5 million to Rs 10 million per customer. Likewise, the single borrower ceiling for margin loans secured against shares has been increased from Rs 15 million to Rs 25 million, providing greater financing flexibility for investors and supporting liquidity in the stock market. In addition to expanding lending limits, the central bank has introduced a new capital management measure for banks and financial institutions. Under the revised provision, regulatory reserves created from non-banking assets acquired by banks can now be counted as Tier 2 capital for up to two years after acquisition. NRB said the measure is intended to enhance banks' capital adequacy, strengthen their lending capacity, and improve the overall stability of the financial system while supporting broader economic activity.

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