The central bank allowed domestic commercial banks of borrowing fund for investment in renewal energy, hydroelectricity, power transmission lines, cable cars, airports, tunnel ways, roads, bridges as well as prioritized sectors including infrastructure and other productive sectors.
Moreover, the funds can also be used to provide loans to tourism, agriculture and microfinance sectors.
However, the central bank has barred the commercial banks from using the borrowed funds towards housing, real estate sectors, stock market and other sectors that are considered unproductive.
If the loan is received in convertible foreign currency while taking loan on Indian currency, it must be limited within 50 percent of the primary capital.
The banks having capital fixed by the Nepal Rastra Bank can be allowed by a decision of their board of directors. Such banks should be clean- no blacklisted for any international transactions. Similarly, the foreign loan needs to be paid within one to five years.
However, the renewal of the loan payment is made with NRB permission.
