The Nepal Rastra Bank (NRB) released its mid-term review of the Monetary Policy for FY 2080/81 on Chaitra 08, 2081. While the central bank maintained a steady policy stance, it introduced several structural adjustments to enhance financial sector resilience, credit discipline, and monetary transmission. The revisions reflect a cautious approach aimed at maintaining macroeconomic stability while addressing sector-specific concerns.
🧾 Key Policy Highlights (Chaitra 2081)
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Core interest rates unchanged
- Policy Rate: stayed at 5.0 %
- Deposit Collection Rate: 3.0 %
- Bank Rate: 6.5 %
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Loan-loss provisioning
- Reduced from 1.10 % to 1.00 % for performing (“good”) loans – easing pressure on banks
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Loan‑to‑Value (LTV) ratios adjusted
- Personal & electric vehicles: capped at 60 % LTV, down from 80 % for EVs
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Microfinance interest rate regulation
- MFI lending rates to be linked to the base rate starting Jestha 2082 (~May–June 2025)
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NDF (Non‑Deliverable Forward) limit
- Raised from 15 % to 20 % of primary capital, allowing BFIs more FX hedging space