| RB allows multi-national banks to open branch in Nepal |
| Monday, 14 December 2009 08:16 | |||||
Nepal's central bank, Nepal Rastra Bank (NRB), has introduced a policy to allow international banks to open their branches in Nepal for whole sale banking starting January 1, 2010, in line with the provisions of World Trade Centre (WTO) membership. NRB has also set the criteria for banks which want to open their branches in Nepal in its policy announced on Sunday. Nepal had committed to open its market for international banks from 2010 when it took the WTO membership. According to the criteria set by NRB, the banks opening branches in Nepal should do so with a minimum capital of USD 30 million and an additional USD 5 million for each additional branch. Likewise, such banks cannot accept deposits less than Rs 100 million and issue credit of less than Rs 300 million and can invest only in large business sectors including hydro-power, aviation, tourism and railway. Contrary to popular speculation that international banks would throng to the Nepali market from 2010, none of the banks have applied for it so far. NRB officials said, the banks might not have applied due to lack of proper regulation so far. Although, opening of branches of international banks in Nepal will not affect the general public directly, bankers say, it will help the nation's economy by creating more employment opportunities and helping large infrastructure projects.nepalnews.com source: |
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