NRB allows multi-national banks to open branch in Nepal

Nepal's central bank, Nepal Rastra Bank (NRB), has introduced apolicy to allow international banks to open their branches in Nepalfor wholesale banking starting January 1, 2010, in line with theprovisions of World Trade Centre (WTO) membership. NRB has also set the criteria for banks which want to open theirbranches in Nepal in its policy announced on Sunday. Nepal hadcommitted to open its market for international banks from 2010 when ittook the WTO membership.According to the criteria set by NRB, the banks opening branches inNepal should do so with a minimum capital of USD 30 million and anadditional USD 5 million for each additional branch.Likewise, such banks cannot accept deposits less than Rs 100 millionand issue credit of less than Rs 300 million and can invest only inlarge business sectors including hydro-power, aviation, tourism andrailway.Contrary to popular speculation that international banks would throngto the Nepali market from 2010, none of the banks have applied for itso far. NRB officials said, the banks might not have applied due tolack of proper regulation so far.Although, opening of branches of international banks in Nepal willnot affect the general public directly, bankers say, it will help thenation's economy by creating more employment opportunities and helpinglarge infrastructure projects.
from nepalnews.com