Amending its Integrated Directive, 2081 issued to banks and financial institutions (BFIs), the Nepal Rastra Bank (NRB) on Friday, September 26, allowed industries, businesses, institutions, and borrowers affected by “unusual circumstances” following the Gen Z‑led protests on September 8 and 9 — to reschedule or restructure loans until mid‑January 2026.
Nepal witnessed widespread destruction of private and public properties during the protests.
The directive stipulates that any rescheduled or restructured loan must retain the same classification category it held as of mid‑July 2025, with the corresponding loan loss provisioning maintained.
For industries and businesses directly impacted, BFIs may extend additional loans to help resume operations, charging an interest rate not exceeding the base rate plus 0.5 percentage points until the enterprise becomes fully operational.
Loans of borrowers linked to directly affected institutions — through forward or backward economic linkages — may also be rescheduled or restructured. Institutions, however, must verify the extent of the impact and collect at least 5 percent of the due interest before approving such arrangements.
The directive also covers loans affected by disruptions at the Rasuwa and Tatopani customs checkpoints caused by recent natural disasters. Such loans may likewise be rescheduled or restructured until mid‑January, subject to verification of the business impact.
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