Nepal Rastra Bank (NRB) will not review its directive to banks and financial institutions (BFIs) to hike their paid-up capital despite intense pressure from lawmakers with interests in some banks, governor Chiranjivi Nepal said on Wednesday.
A team of bank promoters led by lawmaker and Civil Bank chairman Ichchha Raj Tamang recently hosted a meeting with the parliamentary finance committee chairman Prakash Jwala at the Hotel Radisson and urged him to instruct the central bank to extend the deadline for boosting the paid-up capital. The central bank has given a deadline of mid-July 2017.
In addition, the central bank has asked them to present a plan by mid-September showing how they are going to raise the paid-up capital. The finance committee has also been hosting several rounds of meetings on the matter.
As per the central bank’s directive, commercial banks are required to increase their capital to 8 billion rupees (US$75.3 million) from the current 2 billion rupees, while national level development banks have to raise their capital to 2.5 billion rupees from 640 million rupees. Likewise, national-level finance companies need to increase their capital to 800 million rupees from 200 million rupees.