KATHMANDU – Nepal’s central bank, Nepal Rastra Bank (NRB), has introduced new provisions permitting banks and financial institutions (BFIs) to buy and sell loans disbursed in the agriculture and energy sectors through other financial institutions.

Under the revised directive, part of NRB’s Unified Directive 2081, any loan transaction within this repurchase arrangement must involve the actual transfer of funds. The purchasing institution will be required to record the transaction in its accounts, and only the purchasing institution will be able to count the acquired loan under its agriculture and energy sector loan portfolio.

The new framework applies to Class A, B, and C financial institutions. Previously, BFIs could manage loans in these sectors via inter-bank transactions, but the originating institution maintained the customer relationship. The earlier provisions did not require customer consent for such transactions.

The move is expected to enhance liquidity and flexibility in the financial sector, particularly in the agriculture and energy sectors, by facilitating the transfer and management of loans between institutions.