Banking News – Nepal Police and Rastriya Banijya Bank Limited (RBB) have signed a memorandum of understanding (MoU) on operating salary savings accounts and providing loan facilities to Nepal Police personnel.

The agreement was signed after the previous arrangement under which RBB had been operating salary accounts for Nepal Police employees for the past 10 years expired. The new agreement will ensure continuity of the services.

At a ceremony held at Nepal Police Headquarters on Tuesday, Inspector General of Police Dan Bahadur Karki and RBB Chief Executive Officer Devendra Raman Khanal signed and exchanged the MoU.

Addressing the event, IGP Karki thanked RBB for the agreement and expressed confidence that the arrangement would further motivate police personnel who work around the clock. He also said that retired, martyred and disabled police personnel and their dependent family members would receive easier access to affordable loans and other financial services.

RBB CEO Devendra Raman Khanal said the bank and Nepal Police have been cooperating at various stages and that the bank would continue necessary coordination and cooperation with Nepal Police in the future.

Under the agreement, services related to salary savings accounts, collateral-free professional loans, pension distribution and lending facilities for retired employees and their dependent families have been renewed for an additional five years.

According to the agreement, professional loans of up to Rs. 15 lakh and pension loans of up to Rs. 5 lakh will be available.

Similarly, serving police personnel as well as retired, martyred and disabled police personnel whose pension accounts are maintained at RBB will be eligible, subject to Nepal Rastra Bank directives and the bank’s consumer lending guidelines, for home loans of up to Rs. 50 lakh with a repayment period of up to 20 years. Vehicle loans will also be available for 7 to 10 years for the purchase of vehicles.

The agreement sets the premium interest rate at 1 percent for home loans, 1.75 percent for vehicle loans and 1 percent for education loans.

The agreement also includes insurance coverage for police personnel. In the event of death or permanent disability caused by an accident, the employee will receive insurance coverage of Rs. 5 lakh.

For account-holding police personnel who suffer injuries in accidents and require medical treatment, insurance benefits including compensation for hospital stays and treatment expenses will be provided in accordance with directives issued by the Nepal Insurance Authority, without allowing duplicate insurance claims.

The agreement states that police personnel can obtain the insurance by paying an annual premium of Rs. 100 per person.