Kathmandu. Nepal Rastra Bank (NRB) has revised the system of loan classification. Nepal Rastra Bank (NRB) has issued a directive to banks and financial institutions (BFIs) on Friday.

The Nepal Rastra Bank (NRB) has reduced the deadline for classification of non-performing loans by making a new amendment to the classification of loans and loss provisions. According to the new directive, the loans classified as weak, doubtful and bad can be transferred to the good category only after the payment of all the outstanding amount and regularization for 3 months.

According to the previous system, the non-performing loan had to be closely monitored for 6 months after payment of the agreed amount and 5 percent of the loan loss was to be classified as good only after 6 months. The new directive has made it mandatory to transfer to a good class only after being regular for 3 months.

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