Borrowers Paying Regular Installments Won't Be Blacklisted Despite Business Closure

Nepal Rastra Bank has introduced a new provision ensuring borrowers who regularly pay their loan installments won't be blacklisted even if their business shuts down. According to the updated directive, loans with timely repayment of principal and interest will not be categorized as non-performing loans (NPL) due to business closure. Previously, such loans were automatically classified as NPL, leading to the blacklisting of borrowers. This new policy aims to protect responsible borrowers and ease banks' provisioning management. It is expected to strengthen the relationship between borrowers and financial institutions.