Kathmandu, March 17
Nepal’s central bank has relaxed criteria that foreign banks had to meet to open their branch offices in the country.
Issuing a new Foreign Bank Branch Licensing Policy on Wednesday, the Nepal Rastra Bank has decreased the minimum paid-up amount required for a foreign bank to open its branch in Nepal.
Until now, as per the 2010 policy, the banks were required to have a paid-up capital of Rs 8 billion, equal to the amount required for a commercial bank to launch its operation. But, as per the new policy, it is just USD 20 million (approximately Rs 2.4 billion).
The Bank and Financial Institution Regulation Department of the central bank says the provision has been revised to make it easy for the foreign banks to open their branches in Nepal.
