Banking News – The Nepal Rastra Bank has announced plans to eliminate the practice of creating unlimited liability through personal guarantees used as collateral for loans.

Presenting the Monetary Policy for FY 2083/84, Governor Bishwanath Paudel said the central bank will also introduce measures to reduce instances where individuals are blacklisted due to dishonoured cheques, which often restrict their access to banking services.

The governor said the monetary policy includes special regulatory provisions to facilitate the management of non-performing loans in distressed industries, support the revival of stressed loans, determine share-backed loan limits based on the financial strength of institutions, and ease the loan-to-value (LTV) ratio for large electric vehicles used as public transportation.