The central bank's Bank and Financial Institutions Regulation Department incorporated this amendment into the Integrated Directive for Class D Licensed Microfinance Financial Institutions, 2082, via a newly added clause under Directive No. Point No. 13-082.
Under the revised framework, microfinance companies confronting physical damage or operational disruptions caused by the severe natural disasters that struck Rasuwa and other regions in August can immediately transfer or merge affected branches with nearby locations at their own discretion. Institutions utilizing this emergency flexibility are legally required to formally notify the central bank regarding the relocation or adjustment within seven days of execution.
Previously, microfinance operators faced procedural delays during emergencies as they were mandated to complete conventional bureaucratic approval processes with the central bank prior to shifting any branch. Issued under the authority of Section 79 of the Nepal Rastra Bank Act, 2058, the updated directive aims to remove administrative hurdles, ensure uninterrupted financial service delivery, and safeguard institutional operations during crises.
