MICROCAPITAL BRIEF: Nepal Rastra Bank Recognizes Local Microfinance Bank With National Development Bank Status

The Nepal Rastra Bank, which is the nation’s central bank, recently recognized Nirdhan Utthan Bank Limited, a local microfinance bank, with the “National Level Microfinance Development Bank” designation.  After Nirdhan Uttahan Bank reached minimum capital requirements of NPR 100 million (USD 1.34 million) in paid-in equity, it became the first microfinance bank in the country to be recognized with this designation.  The designation means that Nirdhan Uttahan Bank has official sanction to open branches in all seventy-five districts of Nepal.  Additionally, with the “development bank” designation, NUBL may obtain different sources of funding for its operations, can reach a broader swath of clients and can accept collateral for its larger loan products.

About Nepal Rastra Bank (NRB):
Established in 1956 pursuant to the Bank Act, Nepal Rastra Bank (NRB) is the nation’s central bank.  As the central bank, NRB formulates and monitors the nation’s monetary and fiscal policy and regulates the nation’s banking and financial sectors. NRB website: http://www.nrb.org.np/aboutus/intro.php
 
About Nirdhan Utthan Bank Limited (NUBL):
Established in 1993, Nirdhan Utthan Bank Limited (NUBL) began as a non-governmental organization with the establishment of its first project office  in Siktohan VDC of Rupandehi district in the Tarai region of Nepal.  NUBL incorporated in 1998 and focused exclusively on microfinance activities.  A year later, NUBL obtained a license to operate as a commerical bank and currently operates in twenty-four districts with seventy-five branch network. NUBL website: http://www.nirdhan.com 
 
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