Kathmandu. Nepal Rastra Bank (NRB) is going to review the dividend-related arrangements of microfinance companies through the monetary policy for the upcoming fiscal year 2082/83 BS. Governor Dr Bishwanath Poudel has said in the monetary policy presented today that the existing provisions related to dividend of microfinance companies will be amended.

“The existing arrangement regarding distribution of more than 15 percent dividend (cash or bonus) annually by microfinance financial institutions will be reviewed as per the existing arrangement,” the policy states.

Similarly, loans up to Rs 300,000 issued by microfinance companies to youths going for foreign employment with or without collateral can be counted as loans for the poor. In case of women, such loan will be maximum Rs 5 00,000.

According to the monetary policy, the provisions related to the target category, criteria for obtaining loans and eligibility of borrowers will be reviewed for microfinance to increase the utilization of loans by ensuring that the loan of microfinance financial institutions reaches the target category.

Similarly, the rastra bank has said that the limit arrangement of poor and other directed loans from banks and financial institutions will be studied and reviewed.