KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

Share Market Gains 6.74 Points; Rs 3.44 Billion Turnover

The Nepal Stock Exchange (NEPSE) index showed a marginal improvement on Monday, rising by 6.74 points to settle at 2,601.61. The day’s trading involved the transaction of 7,757,625 units of shares from 329 companies across 56,122 transactions, totaling a turnover of Rs 3.44 billion. Sub-indices for sectors including banking, development banking, finance, life insurance, and manufacturing saw gains. Swastik Laghubitta and SY Panel Nepal hit a positive circuit, while Himstar Urja Company was the biggest loser, with its share price falling by 6.95%.

NRB Tightens Collateral Seizure Rules, Eases Provisioning Burden on Banks

Nepal Rastra Bank (NRB) has amended rules on collateral acquisition, requiring banks and financial institutions to conduct at least three failed public auctions before acquiring nonbanking assets. Earlier, collateral could be seized after two unsuccessful auctions. The central bank has also scrapped the requirement to maintain 100 percent provisioning from the date of asset acquisition, easing regulatory pressure on lenders. Under the revised framework, collateral must be valued at the prevailing market price or the total outstanding loan amount, whichever is lower. The changes aim to improve asset recovery while providing operational relief to the banking sector.

Bank Deposit Interest Rate Drops Below 5% as 13 Banks Cut Rates

The maximum average interest rate on individual fixed deposits across commercial banks has fallen below 5% for this month (December 16 to January 14, 2026). Following rate cuts by 13 banks, the average maximum interest rate is now 4.834%, a decline of 0.2065 percentage points from the mid-November average of 5.0405%. Prime Commercial Bank, Global IME Bank, and Rastriya Banijya Bank made the largest cuts (0.5 percentage points each). Only Global IME and Himalayan Bank are offering a maximum of 5.5%. The maximum average rate for institutional fixed deposits also fell by 0.13 percentage.

NRB Eases Branch Mergers, Mandates 90-Day Public Notice

Nepal Rastra Bank (NRB) has simplified the process for banks and financial institutions to merge or integrate branches in metropolitan areas, where high electronic transaction volumes allow mergers without prior approval. Institutions must publish a 90-day notice in a national daily, on their websites, and at the branches involved. Customers affected by the mergers can repay loans or close services without incurring any fees. The new directive balances operational flexibility for BFIs with consumer protection, ensuring transparency and safeguarding customer rights during branch consolidations.

Tatopani Border Reopens After Week-Long Blockade, Rs 300 Million Goods Damaged

The Tatopani border point, located on the Araniko Highway on the border with China in Sindhupalchok, reopened on Sunday after a week-long blockade by locals was resolved. The road closure was enforced due to non-implementation of an agreement concerning the Eco landslip construction. As a result of the week-long halt, approximately 300 containers, mostly carrying fruit like apples, kiwis, and grapes, were stranded. Traders reported that about 40% of the fruit, valued at Rs 300 million, was spoiled, resulting in a huge loss for businesses. Customs clearance has resumed, though the processing speed remains slow.

Iron & Steel Import Jumps to Rs 51.95 Billion, Export Plunges 72.74%

Despite a slow industrial and construction sector, the import of raw iron and steel materials, key industrial inputs, grew by 5.87% in the first four months of the current fiscal year, reaching nearly Rs 52.95 billion. Conversely, the export of iron and steel products plummeted by 72.74% to just Rs 1.24 billion, down from Rs 4.57 billion in the same period last year. The rise in raw material imports alongside the drop in exports indicates increased domestic consumption, contrary to industry claims of a construction slowdown. The steep decline in exports is attributed to policy instability and the cancellation of the 8% export subsidy program.

Loan Growth Slows Despite Rs 250 Billion Deposit Gain

In the last five months, banks collected nearly Rs 250 billion in deposits but extended only Rs 75 billion in loans, marking a significant slowdown in lending compared to the previous year. Despite the overall slowdown and persistent excess liquidity, the flow of margin-based share market loans increased by 3% (adding Rs 4.287 billion as of October 17), though this is still less than the previous year. Residential real estate loans also grew by 5.3%. Analysts note that the lack of positive market impact from the increased share loans suggests the funds are not primarily being invested in the capital market.

NRB Allows Blacklist Removal Upon Full Loan Recovery

The NRB has introduced a new provision allowing a borrower’s name to be removed from the blacklist if the licensing institution fully recovers all outstanding dues by accepting non-banking assets (collateral). The institution must also secure a commitment from the borrower waiving any future claim on the accepted asset. Furthermore, the directive establishes a mechanism for the immediate removal of individuals, firms, or companies who were mistakenly placed on the blacklist upon a decision and request from the respective institution’s chief executive.

CIAAA Appeals Melamchi Verdict to Supreme Court, Demands Full Rs 6.80 Billion Penalty

The Commission for the Investigation of Abuse of Authority (CIAA) has appealed the Special Court’s verdict in the Melamchi Water Supply Project corruption case to the Supreme Court. The CIAA argues that the Special Court’s decision, which acquitted three former secretaries and partially convicted seven others, ignored evidence and precedent. The CIAA is demanding that the full penalty, including the Rs 6.80 billion claimed as the standard amount, be imposed on all the accused mentioned in the charge sheet. The conviction previously sentenced former secretary Gajendra Kumar Thakur to over eight years in prison and a fine/recovery of over Rs 101 million.

Jumla Apple Exports Bags Rs 412.9 Million

Jumla exported 5,591 metric tons (MT) of apples this year, generating Rs 412.9 million, according to the District Agriculture Development Office. The total production was 18,245 MT, meaning only 30% was exported. Despite an increase in the cultivated area (from 4,377 to 4,497 hectares), total production decreased compared to last year due to hailstorms and unseasonal rains. Juices, jams, and other processed items consumed 2,648 MT of apples, while 1,765 MT remain in stock. The average farm-gate price was Rs 65.50 per kg.

Local Unit Gives Rs 1.2 Million Incentive for Peanut Production

The Halesi Tuwachung Municipality in Khotang has provided over Rs 1.2 million in incentive payments to local peanut farmers based on their production. This year, 261 farmers produced 93.84 metric tons, nearly double the previous year’s yield. The municipality chose an output-based incentive, giving Rs 2,500 for five muri (one muri is equal to 37.3 kg) and Rs 300 for each additional muri to ensure the benefits reached genuine farmers. The increased incentive, up from Rs 632,900 last year, has successfully encouraged more farmers to grow the crop.

NRB Caps Founder Shareholding at 15%, Sets Five-Year Compliance Window

Nepal Rastra Bank has directed founder shareholders of banks and financial institutions to reduce their equity to within regulatory limits by fiscal year 2030/31. Individual stakes are capped at 15% in one BFI and 1% in others, with higher limits of 25% and 10% for ‘D’ class institutions. Non-compliant shareholders will face blocked dividends, barred participation in rights issues, and possible forced mergers or acquisitions. The NRB has also revoked the previous allowance for government funds like EPF and CIT to hold up to 25% equity, giving them five years to divest excess shares and meet the new thresholds.

Banana Price Rises Due to Import Halt, Wholesale Reaches Rs 250

The price of bananas has increased in the market due to a policy halt on imports, which coincides with the fruit’s off-season (winter), when local production is low. The wholesale price of a dozen bananas has increased to Rs 250, up from Rs 150 ten days ago. Even though consumption is typically low in the cold season, the restriction on importing Indian bananas has caused the price surge. The price list from the Kalimati Market on Monday showed the wholesale price ranging from Rs 180 to Rs 200 per dozen.

United Idi Mardi Proposes 5% Bonus Share, 0.26% Cash Dividend

United Idi Mardi and RB Hydro Power Limited has announced a dividend proposal from the profit of the fiscal year 2024/25. The Board of Directors, meeting on December 12, proposed distributing a 5% bonus share and a 0.26% cash dividend (for tax purposes) from the existing paid-up capital. This is an increase from the previous year’s dividend of 4% bonus shares and a 0.211% cash dividend. As of Monday, the company’s stock was trading at Rs 557 per share. The dividend will be distributed to investors after being approved by the upcoming general meeting.

Gold Price Hits Record High of Rs 260,700 per Tola

The price of gold reached an all-time high, trading at Rs 260,700 per tola (11.66 grams) on Monday, an increase of Rs 1,900 from Sunday. This surge follows a Rs 2,200 jump the previous day, pushing the price far past previous records. The Federation of Nepal Gold and Silver Dealers’ Association attributes the soaring domestic price to rising international market prices combined with the appreciation of the US dollar. Silver also saw a jump, increasing by Rs 45 to settle at Rs 3,870 per tola.