C1 Single Obligor Limit in general is **25% of Core Capital.

(Funded + Non-funded Facilities)**

*
*
*
*
*
*
*
*

C2 Loan Provided to ***Hydro Power Project***, ***Transmission Line*** and ***Cable Car Project***

C.3 LOAN LIMIT NOT APPLICABLE

C.3.A
*
*
*
*
*
*
*
*

C.3.B
*
*
*

C.4 Loan and Facilities provided on Guarantee or Counter Guarantee of Joint Venture BFI

C.5. Related Parties to be Considered A single Party

*
*
*
*
*
*
 *

Clause No 6 Details of Inter-related Customers to be furnished

Cl.7 Treatment as Separate Group

C. 8 Concentration Risks to be minimized
C. 9 Return on Borrowings by Big Borrowers to be submitted

C.10 Sectorial Loan Limit

1
2
a
b
3

4 Provisions related to Home Loan and Real State Estate

a
b

b1
b2
b3
b4
b5
b6

5 Provisions Related to Personal Home Loan

1
2
*
*
*
3
4
6 Provisions related to Construction of House/Building

7 Provisions related to Personal Vehicle

 **However, the SOL shall be **30% of Core Capital** for the Following industries.
export sector,
small and medium industries,
pharmaceutical industries,
agricultural sector,
tourism,
cement industries,
iron industries
other production-oriented industries.

The Core Capital Taken is the **previous Quarter's Core Capital Certified by The Internal Auditor**

Car Project***
***Upto 50% of Core Capital***
However, for Hydro Power Project if loan ***is to be provided above 25% SOL, Power Purchase Agreement*** with t
However, ** Repayment Schedule** shall be prepared and the same shall be justified by the Cash flows and other p
Installment shall start the ***earlier of Production or Moratorium Period for Hydropower***
If A Customer Wants to invest in more than one of the above mentioned sector(Hydro,Trans,Cable Car) **the total lo

Bond issued by NRB

FD LOAN
Bond issued GoN
Unconditional Guarantee of :
Asian Development Bank
World Bank
International Financial Corporation
Other International Multilateral Financial Institutions in which Nepal is a member
International Rated Bank

Loan provided by A Class BFI to the following institution for the purchase and import of the following:
NOC ---- Gas and Petroleum Products
Nepal Food Corporation ----- Food
Agricultural Product Company Ltd-------- Agricultural Chemical Manure

**No limit but, SOL Applies**

However, **Internationally Rated Bank as per Clause 3.A

a personal guarantee has been given to each other, all of such persons giving/taking the guarantee.
The following parties are considered to be related parties:
Co holding. 25% of another Co., then Both Companies are related parties.
Company and it's shareholder, directors or their Single family or chutteko Husband and Wife , Son, Daughter, Dhar
If the person mentioned in above holds 25% singly or in group then such company
if the related parties maintain control over the companies
Firm or Companies under a single group .Eg : Chaudhary Group
If credit is provided to more than one person against the same collateral, all of such persons;
The licensed institution shall prepare the records of the single borrower and related customers on half-yearly basis a

The licensed institution shall prepare the records of the single borrower and related customers on half-yearly basis a
Any corporate body or company having full or more than 50 percent ownership of Government of Nepal shall be trea
Where a licensed institution has extended credit or facility to one customer, firm, company or group of related borrow
The details of Big Borrower ( Loan > 2 crore) shall be updated within 1 month of Quarter End in the web address pro

Licensed institution shall have adequate internal policies and systems in place to monitor the concentration of sector
The licensed institution shall separate sectoral exposures into two levels on the basis of credit concentration and arr
Tier 1 : 50-100% of Core Capital BFI shall formulate Measurement,Monitoring, Information
Tier 2 : >100% of Core Capital With respect to extension of Loans and Advances and Fac
BFI may disburse in any sector upto 40% of the total loan disbursed
Sector wise disbursal Monthly in Annex 3.1 within 15 days of month end, on a monthly basis

50% of FMV, 60% of FMV to Residential Building

Limit Upto 25% of Total Loan : Home Loan, Commericial Complex and Residential Apartment, Complex earning Inc
Limit Upto 10% of Total Loan: Other Real Estate Loan
Other Provisions are :
Real Estate Loan means Loan as per Real Estate Loan in Explanation 5 of Annex 9.3 ka of Directive no. 9
The loan disbursed above the loan limit mentioned above shall not be restructured or renewed
This provision has not compelled to call back any specific loan before the repayment date in connection with mainta
In case of loan commitment already made by a licensed institution upon approval of loan limit under the said purpos
In case the real estate/residential housing loan provided in such a manner exceeds the limit, the risk weight of 150 p
The amount down paid or deposited after opening up of the booking by the purchasers of apartments of a multi-resid

Loan upto 1 Crore shall not be included in the lImit mentioned in Sub-Clause 4(kha)
Home loan means After assessment of the Income source of the borrower, the Loan fulfilling all the following criteria
Installment should be within the repayment capacity of the borrower
For the purpose of living or renting out
House/apartment has been constructed or purchased
Such loan paper for housing loan shall be Approved by the BoD
1 family 1 one Home loan only.

Building Within Municipality area and Loan = Building Construction, the BFI has to confirm whether the building mee
In places like Metropolis,submetro,Municipality and VDC where National Building Code has been applied , loan shal

50% of FMV may be disbursed

Commerical Purpose no limit
 ernal Auditor**

er Purchase Agreement*** with the related authority has to be done

ed by the Cash flows and other proof of inflows.

ro,Trans,Cable Car) **the total loan** shall be 50%

ort of the following:

g the guarantee.

and Wife , Son, Daughter, DharmaPutra, Dharmapurtri, Father, Mother, Step Mother and those people to be looked after by
customers on half-yearly basis and submit within one month to the Bank and Financial Institutions Regulation Department and

customers on half-yearly basis and submit to the Bank and Financial Institutions Regulation Department and the concerned Su
overnment of Nepal shall be treated as a separate group.
mpany or group of related borrowers in excess of the exposure limit referred to in Sub-clause (1) of Clause (1) above, such exc
arter End in the web address provided by the bank

onitor the concentration of sectoral exposures for controlling risks. Provided that in the event of Directives issued by this Bank, a
s of credit concentration and arrange for control, monitoring and information system as follows (As per Annexure 9.3:
urement,Monitoring, Information and Policies, and quarterly monitor the same
of Loans and Advances and Facilities exceeding 100 percent of Core Capital into a single sector such loan shall be also be end

Apartment, Complex earning Income and Other Real Estate Loan including Land Purchase and Plotting Loan

9.3 ka of Directive no. 9

or renewed
t date in connection with maintaining the overall limit. The licensed institution may recover loan until the date of repayment fixed
loan limit under the said purpose/product before issuance of these Directives 75 (on December 17, 2009), these Directives sha
the limit, the risk weight of 150 percent shall have to be provisioned while calculating the total risk weight assets for the amount
ers of apartments of a multi-residential complex shall have to be compulsorily deposited to the concerned bank in case only one

n fulfilling all the following criterias:

onfirm whether the building meets the criteria as prescribed by concerned authority and all the required documents should be o
ode has been applied , loan shall only be disbursed on such loans that have been established as per the National Building Code
eople to be looked after by the person like brother, sister
Regulation Department and the concerned Supervision Department of this Bank.

ment and the concerned Supervision Department of this Bank within 1 month.

Clause (1) above, such excess credit or facilities shall be provided with **100 %** additional loan loss provisioning to cover the

ctives issued by this Bank, an additional loan loss provision according to Clause 8 shall be provided. The list of various sectors
per Annexure 9.3:

ch loan shall be also be endorsed by the Board of Directors. The Board of Director shall make a policy decision as to whether or

the date of repayment fixed on the basis of installment of the loan according to the installment.
2009), these Directives shall not be deemed to have prohibited to provide loan equal to the amount of such commitment.
eight assets for the amount so exceeded.
erned bank in case only one bank provides loan for such complex and to the lead bank in case of a consortium financing.

red documents should be obtained Like Approval, Completion and other documents
r the National Building Code
s provisioning to cover the concentration risk.

The list of various sectors of the economy is referred to in the enclosed Directives Form No. 3.

cy decision as to whether or not to maintain the exposure limits exceeding 100 percent of the Core Capital on annual basis. Suc

of such commitment.

consortium financing.
Capital on annual basis. Such policy decision shall also be intimated to Bank and Financial Institutions Regulation Department a
s Regulation Department and concerned Supervision Department of this Bank.
 1 Provision Relating to Credit Information
Credit Information Bureau Ltd., having been incorporated and in operation under the Companies Act, 2006, has b
2. Returns to be filed with the Bureau relating to Borrowers (Customers)
2.1 Licensed institution shall furnish to the Bureau the following loan details(as per form no. 1 and 2) within 15 days
1
2

2.2 Thereafter, the above details have to be kept on sending within fifteen days of the date of completion of the trimes

2.3 Statement to be submitted by central and regional offices where the amount of the loan/facility obtained by or app
2.4 Details of the customer to be obtained
The following details of the borrower customer shall be obtained prior to providing/approving loan/facilities of R
a
b
c
d
e
3. Mandatory requirement of acquiring credit information
1 Prior to extension or renewal, restructuring or rescheduling of loans of Rs. One Million or more, a licensed insti
2 Where the information from the Bureau according to Clause (1) above is received in course of extension of credit
3 For the credit information received from the Bureau under this clause, the licensed institution shall pay fee to the

4. Procedures for Blacklisting

1 BFI shall recommend loan of Rs. 1 million or more, to be blacklisted in case of default to the CIB. However, this
2 Once the recommendation to blacklist is received from the concerned bank, the name list shall be blacklisted with
3 CIB Shall confirm the name of the defaulter and blacklist the same within 5 days

5. Classification of Borrowers
The borrowers who have borrowed loan from a bank and financial institution and defaulted shall be classified the
5.1 Willful Defaulters
a All borrowers who/which are out of contact for one year after the loan has become overdue, have not initiated for
b Borrowers who/which despite the possibility to sale the mortgaged property to repay the outstanding loan but are
c Borrowers who/which are operating more than one business or industries but not utilizing the earnings from such
d Borrowers who/which have caused diversion of fund by not utilizing the loan for the intended purpose, siphoned o
e Borrowers who/which have used the name of another person or third party, for instance, servant, own employees
f Borrowers who/which have, upon the loan is overdue, not furnished with additional collateral or personal guarant
g Borrowers who/which have offered false description with regard to collateral or business.
h Borrowers who/which are found to have embezzled with the collateral associated with the loan.
i Borrowers who/which have obtained the loan in collusion with the employees of the lending Banks and Financial
j Investors who/which have caused overcapitalization of the project through obtaining wrong analysis of the projec
5.2 Non-Willful Defaulters
a Borrowers who have intention to pay the loan but failed owing to the loss in business or become problematic on a
b Borrowers who despite not being able to repay the loan are in contact with the lending Bank and Financial Institu

6. Prohibition to Extend Credit by Licensed Institutions to Blacklisted Borrowers

A licensed institution shall not extend new loans/facilities, give additional loan/facilities, renew loan/facilities or r
a is splitted into points for understanding
 * This shall not prohibit rescheduling or restructuring of the outstanding loans within the Directives of this Bank.
* Similarly, this prohibition shall not be applicable for a period of six months in case of the individual, firm, compa
* The Board of Directors of the concerned licensed institution may, if the borrower's request is found appropriate, e
* The individual, firm, company or corporate body related to the black listed borrower who/which has not paid the
* Failing to which, extension of new or additional credit, renewal or release of balance of installment shall be prohi
b In case of Credit/Debit card transactions, the Licensed Institution is not prohibited from making payment of Credi
c Where a licensed institution wishes to provide a loan to the family members of any black-listed individual, it may

7. Special provisions relating to Collateral Valuators

1 Where, in course of auctioning the mortgaged property by any licensed institution, the amount to be realized is les
2 Where the amount of mortgaged collateral to be realized in auction by any licensed institution is less than two-thi
3 Where the borrower is removed from the blacklist, the Bureau shall also remove the name of the valuator from th
4 The licensed institution shall maintain a roster of collateral valuator having obtained information as to whether or

8. Special Arrangements in Respect of Auditors

The bank and financial institution shall recommend to the Institute of Chartered Accountants of Nepal for initiatin

9. Recommendation as to Confiscation of Passports

The licensed institution may recommend to the government through this Bank to confiscate the passports of the b

10. Provisions relating to Blacklisting

10.1 Conditions for Inclusion in the Blacklist
All borrowers or persons having obtained a loan/facility of Rs. 1 million or above from a licensed institution shall
a
b

c
d
e
f
g
10.2 Other circumstances Leading to Blacklisting:
a
b
c
d
***
e

2
3
4
5
f
 g

10.3 Parties to be included in Blacklist

In the cases where one or all circumstance(s) leading to inclusion in the blacklist prevails, the following borrower
Provided that, if a borrower is black listed, the members of such borrower's undivided family need not be b
a The borrower/individual, firm, company or corporate body utilizing the credit facility, the person issuing cheque w
b Proprietor of a proprietorship firm;
c Partners of a partnership firm;
d The individual, firm, company or corporate body that has provided guarantee for extension of such credit facility
Provided that, prior to including the guarantor in the black list, the licensed institution shall serve the guarantor a
e Directors of a company, corporate body;
f Following persons of Public or Private Companies
*
*
*
*
g Where the blacklisted individual or organization owns individually or institutionally 15 percent or more shares in

h Where the representative of a blacklisted individual or institution is Director in any non-government firm/compan

i The individual, firm, company or corporate body falling under one group having inter-relationship according to th
j Individual, firm, company or corporate body providing guarantee to the customer.

k In case of death of the borrower, the licensed institution may, by assigning the liability to the individuals who rec
l In case a borrower has not been included in the blacklist even after the loan is overdue by a period of more than tw

10.4 Circumstances not requiring blacklisting

In case a borrower makes a request showing his/her inability to pay the principal and/or interest in time due to the
a
b
c
d
Provided that the grounds on which such decision is made shall be clearly stated.

10.5. Circumstances leading to Removal from Blacklist

In case of the following circumstances, the concerned licensed institution shall have to make recommendation to t
1 In case the principal and interests of the overdue loan has been paid or the issuer of cheque without sufficient bala
2 In case the Board of Directors of the concerned licensed institution has extended the maturity period of the loan c
3 In case the concerned bank and financial institution notifies that where the loan or facility is provided with the inv
4 If the Board of Directors of the concerned licensed institution approves assignment of the loan liabilities to other
5 Where the loan/facility is provided with the involvement of more than one borrower having their liabilities fixed,
If the Director or Executive has repaid his/her portion of loan under the order of Loan Recovery Tribunal
6 Despite a bank and financial institution has included the non-willful defaulters in the blacklist maintained by the C
11 Relating to Consortium Loan
1 In respect of the consortium loans, the lead bank or financial institution, subject to these Directives and by the ma
2 Where, the lead bank has failed to recommend the blacklisting of the borrower.In cases where a participating bank
3 Where a borrower has been blacklisted because of enjoying double credit and facilities under the consortium loan

12. Service of Notice Prior to Inclusion in blacklist

Prior to include any borrower or all other related parties to the credit in the blacklist, the concerned licensed instit

13 However, even after removal from the black list, there shall be no restriction to provide loan to the Borrower or re
If such provision of not lending loan on the basis of past inclusion in blacklist is included in the credit policy, ame

14 Obtaining Consent of Borrower or Guarantor

At the time of extending loan/facility to any borrower, it shall be compulsory for the concerned licensed institutio
However, this provision shall not restrict the inclusion of such person in the blacklist.

15 Bureau May Ask for Information and Statements

In the process of implementation of Section 88 of Nepal Rastra Bank Act, 2002, Nepal Rastra Bank Credit Inform

16 Inspection by Bureau
The Bureau may inspect and follow-up the licensed institutions in respect of whether or not the licensed institutio
17 Information to be disclosed
The Bureau shall update and publish for information of general public within the last day of the month of Shrawa
18 Other Provision
1 Maintaining Confidentiality
Since the information and other particulars to be exchanged between licensed institutions and the Bureau are sens
2 Loan extended against individual and corporate guarantee
Where the credit/facility extended by a licensed institution against any type of personal or corporate guarantee is n
3 Change in the name of shareholder
Where the blacklisted shareholders have transferred the shares to other persons and the new shareholder has accep
The shareholder holding more than 15 percent shares of a borrower private company or a public company that has
4 With regard to Directors nominated from Government or Semi-Government Bodies
Notwithstanding anything contained in these Directives, none of the individuals nominated as a Director by this B
5 Undivided Family Members
For the purpose of these Directives, undivided family member means the concerned person's spouse, son, unmarri
6 Credit Information Unit
For the purpose of carrying all works relating to the Bureau, licensed institutions shall establish a separate Unit an
7 Erroneous inclusion in the blacklist
In case an individual, firm, company or corporate body that is not liable to be included in the blacklist has been in
8 Membership of the Bureau
For the purpose of exchange of credit information and inclusion of defaulting borrowers in the blacklist, all licens
9 Exemption
Notwithstanding anything contained elsewhere in these Directives, Government of Nepal or bodies having fully o
10 Updating the statement of blacklist
The blacklist prepared by the Bureau shall have to be maintained updated.
11 The following provisions have been made with regard to the rights shares, preference shares, debentures and divid
 a

12 In case of Promoter shares

a
b
c

13 Prior Information
Before recommending for blacklisting to the CIB in respect of other BFI, prior information to such BFI shall be p

19 Punishment and provisions relating to Actions:

1 If the licensed institutions do not furnish the names and particulars of the borrowers liable to be blacklisted in tim
2 In case any bank or financial institution extends a credit facility to any blacklisted individual, firm, company or co
3 In case any bank or financial institution requiring to recommend any individual, firm, company or corporate body
4 Any outstanding amount of loan with the blacklisted individual, firm, company and corporate body shall be provi
Where such provision is not found to have been made, the concerned Chief Executive shall be punished with a fin
Where a borrower is blacklisted through other bank or financial institution, the licensed institution may make a lo

20 If the promoter of licensed institution is blacklisted, loan shall not be provided to other person or entity against co
 rovision Relating to Credit Information
redit Information Bureau Ltd., having been incorporated and in operation under the Companies Act, 2006, has been named as Credit Inform
be filed with the Bureau relating to Borrowers (Customers)
icensed institution shall furnish to the Bureau the following loan details(as per form no. 1 and 2) within 15 days of the completion of every
The approval of credit facilities of 1 million and above
Credit facility of 1 million or above which has been overdue.

hereafter, the above details have to be kept on sending within fifteen days of the date of completion of the trimester of every fiscal year unti

tatement to be submitted by central and regional offices where the amount of the loan/facility obtained by or approved to any borrower from
etails of the customer to be obtained
he following details of the borrower customer shall be obtained prior to providing/approving loan/facilities of Rs. one million or above by a
In the case of individual borrower and guarantor, a copy of citizenship certificate, permanent and temporary address, particulars
In the case of proprietorship partnership firms, particulars of the Proprietors as referred to in clause (a) above and name, surnam
In the case of private company, particulars as referred to in clause (a) above of Directors and shareholders holding 15 percent o
In the case of public company, particulars as referred to in clause (a) above of Directors and shareholders holding 15 percent or
Name, surname and address of collateral valuator and ceritificate of such valuator
requirement of acquiring credit information
rior to extension or renewal, restructuring or rescheduling of loans of Rs. One Million or more, a licensed institution shall have to obtain c
Where the information from the Bureau according to Clause (1) above is received in course of extension of credit/facilities to any customer/ b
or the credit information received from the Bureau under this clause, the licensed institution shall pay fee to the Bureau as prescribed by the

for Blacklisting
FI shall recommend loan of Rs. 1 million or more, to be blacklisted in case of default to the CIB. However, this provision shall not affect th
nce the recommendation to blacklist is received from the concerned bank, the name list shall be blacklisted within fivedays and the procedu
IB Shall confirm the name of the defaulter and blacklist the same within 5 days

n of Borrowers
he borrowers who have borrowed loan from a bank and financial institution and defaulted shall be classified the following categories:-

ll borrowers who/which are out of contact for one year after the loan has become overdue, have not initiated for restructuring and reschedul
orrowers who/which despite the possibility to sale the mortgaged property to repay the outstanding loan but are unwilling to dispose the col
orrowers who/which are operating more than one business or industries but not utilizing the earnings from such business and other own ass
orrowers who/which have caused diversion of fund by not utilizing the loan for the intended purpose, siphoned off the earnings other than u
orrowers who/which have used the name of another person or third party, for instance, servant, own employees etc., in the business or proje
orrowers who/which have, upon the loan is overdue, not furnished with additional collateral or personal guarantee as demanded by the bank
orrowers who/which have offered false description with regard to collateral or business.
orrowers who/which are found to have embezzled with the collateral associated with the loan.
orrowers who/which have obtained the loan in collusion with the employees of the lending Banks and Financial Institutions, by discouragin
nvestors who/which have caused overcapitalization of the project through obtaining wrong analysis of the project's financial, technical, man
ul Defaulters
orrowers who have intention to pay the loan but failed owing to the loss in business or become problematic on account of prevalence of situ
orrowers who despite not being able to repay the loan are in contact with the lending Bank and Financial Institution and expressed commitm

to Extend Credit by Licensed Institutions to Blacklisted Borrowers

licensed institution shall not extend new loans/facilities, give additional loan/facilities, renew loan/facilities or release of balance of installm
splitted into points for understanding
 his shall not prohibit rescheduling or restructuring of the outstanding loans within the Directives of this Bank.
imilarly, this prohibition shall not be applicable for a period of six months in case of the individual, firm, company or corporate body who/w
he Board of Directors of the concerned licensed institution may, if the borrower's request is found appropriate, extend an additional period o
he individual, firm, company or corporate body related to the black listed borrower who/which has not paid the principal and interest within
ailing to which, extension of new or additional credit, renewal or release of balance of installment shall be prohibited even to the regular pa
n case of Credit/Debit card transactions, the Licensed Institution is not prohibited from making payment of Credit/Debit card, which is issue
Where a licensed institution wishes to provide a loan to the family members of any black-listed individual, it may provide according to the de

isions relating to Collateral Valuators

Where, in course of auctioning the mortgaged property by any licensed institution, the amount to be realized is less than two third of the amo
Where the amount of mortgaged collateral to be realized in auction by any licensed institution is less than two-third of the amount of valuatio
Where the borrower is removed from the blacklist, the Bureau shall also remove the name of the valuator from the blacklist who/which has c
he licensed institution shall maintain a roster of collateral valuator having obtained information as to whether or not the valuator is blacklist

angements in Respect of Auditors

he bank and financial institution shall recommend to the Institute of Chartered Accountants of Nepal for initiating necessary actions accord

dation as to Confiscation of Passports

he licensed institution may recommend to the government through this Bank to confiscate the passports of the blacklisted individuals. Wher

relating to Blacklisting
s for Inclusion in the Blacklist
ll borrowers or persons having obtained a loan/facility of Rs. 1 million or above from a licensed institution shall be included in the blacklis
If the payment of the principal or any installment thereof or the interest is overdue by 12 months (where the customer is enjoyin
If misuse of the loan/facility is proved,
For this purpose, the loan or facility shall be deemed to be misused if the loan is not utilized for the intended purpose in
If misuse of the goods placed in collateral security is proved;
If the borrower disappears;
If the borrower is declared to be bankrupt according to existing law.
If the licensed institution has filed a lawsuit against the borrower in a court of law.
If compaint has been filed to Loan Recovery Tribunal has been made
cumstances Leading to Blacklisting:

If any individual, firm, company or corporate body is proved to have been involved in offences relating to financial matters.
A situation in which any individual, firm, company, an institution failed to repay the loan amount from a licensed institution wi
In the event where the licensed institution has to write off a loan;
However, Loan Written off less than Rs. 50,000 may not be blacklisted
If a cheque is issued in a situation where it would not be cashed or there is no sufficient balance in the account;
If any person, firm, company or a corporate body issues a cheque in the condition where there is no sufficient balance in his/her
and notwithstanding anything contained in Point No. 10.1:-
In case of the cheque bounced once without payment, the payee may, having given a time of within 2 working days for paymen

In case the amount is not paid even after that date, the person, firm, company or a corporate body to receive the payment of the
Upon receipt of the written notice pursuant to clause (2), the concerned bank or financial institution shall provide a notice of se
In case any person, firm, company or a corporate body gives the cheque to a bank and financial institution that cannot be cashed
The person, firm, company or a corporate body blacklisted under this clause shall not be allowed to carry out any banking trans
Until payment of cash fine from the Director, chief executive and other official of the bank or financial institution having been
 Expect in case , stop payment order from accountholder due to loss of cheque, unauthorized use of cheque or similar reasons, e
For the purpose of this clause, “proved” means something certified by a court, an inspection team of the concerned licen
be included in Blacklist
n the cases where one or all circumstance(s) leading to inclusion in the blacklist prevails, the following borrower/individual, firm, company
rovided that, if a borrower is black listed, the members of such borrower's undivided family need not be blacklisted.
he borrower/individual, firm, company or corporate body utilizing the credit facility, the person issuing cheque without sufficient balance.
roprietor of a proprietorship firm;
artners of a partnership firm;
he individual, firm, company or corporate body that has provided guarantee for extension of such credit facility to any individual, firm, com
rovided that, prior to including the guarantor in the black list, the licensed institution shall serve the guarantor a notice of 35 days for settlem
irectors of a company, corporate body;
ollowing persons of Public or Private Companies
Directors,
Shareholders holding 15 percent or more share ownership,
Provided that, this shall not prohibit the bank and financial institution to place on blacklist the shareholders of private and publi
Person, firm, company or corporate body having the right to nominate Director.
Where the blacklisted individual or organization owns individually or institutionally 15 percent or more shares in any other firm/company/co
Provided that, this shall not be deemed to have hindered the bank and financial institution to place on blacklist the individual, fi
Where the representative of a blacklisted individual or institution is Director in any non-government firm/company/corporate body, institutio
Provided that in case of fulfillment of all of the following conditions, such non-government firm/ company /corporate body, in

he individual, firm, company or corporate body falling under one group having inter-relationship according to the Directives of this Bank.
ndividual, firm, company or corporate body providing guarantee to the customer.
Provided that in the case of guarantee or partial guarantee, where the guarantor has settled the guaranteed amount, this provisio
n case of death of the borrower, the licensed institution may, by assigning the liability to the individuals who receives the assets of the decea
n case a borrower has not been included in the blacklist even after the loan is overdue by a period of more than two years, explanation thereo

ances not requiring blacklisting

n case a borrower makes a request showing his/her inability to pay the principal and/or interest in time due to the problem arising out of any
Occurrences of natural calamity like flood, landslide, earthquake and so on;
In respect of the borrowers who/which are provided with refinance facility prior to blacklisting on the recommendation of the S
Government of Nepal has acquired the customer's property and place of business;

rovided that the grounds on which such decision is made shall be clearly stated.

ances leading to Removal from Blacklist

n case of the following circumstances, the concerned licensed institution shall have to make recommendation to the Bureau for removal of th
n case the principal and interests of the overdue loan has been paid or the issuer of cheque without sufficient balance has paid the amount to
n case the Board of Directors of the concerned licensed institution has extended the maturity period of the loan considering it appropriate or
n case the concerned bank and financial institution notifies that where the loan or facility is provided with the involvement of more than one
the Board of Directors of the concerned licensed institution approves assignment of the loan liabilities to other individual, firm, company o
Where the loan/facility is provided with the involvement of more than one borrower having their liabilities fixed, and intimation is received f
the Director or Executive has repaid his/her portion of loan under the order of Loan Recovery Tribunal or other concerned Judici
espite a bank and financial institution has included the non-willful defaulters in the blacklist maintained by the Credit Information Bureau L
 Consortium Loan
n respect of the consortium loans, the lead bank or financial institution, subject to these Directives and by the majority decision based on the
Where, the lead bank has failed to recommend the blacklisting of the borrower.In cases where a participating bank or financial institution has
Where a borrower has been blacklisted because of enjoying double credit and facilities under the consortium loan and also separately from a

Notice Prior to Inclusion in blacklist

rior to include any borrower or all other related parties to the credit in the blacklist, the concerned licensed institution shall serve a notice of

owever, even after removal from the black list, there shall be no restriction to provide loan to the Borrower or related parties due to the reas
such provision of not lending loan on the basis of past inclusion in blacklist is included in the credit policy, amendment to the policy shall

Consent of Borrower or Guarantor

t the time of extending loan/facility to any borrower, it shall be compulsory for the concerned licensed institution to obtain the written cons
However, this provision shall not restrict the inclusion of such person in the blacklist.

y Ask for Information and Statements

n the process of implementation of Section 88 of Nepal Rastra Bank Act, 2002, Nepal Rastra Bank Credit Information Bylaws, 2059 and the

he Bureau may inspect and follow-up the licensed institutions in respect of whether or not the licensed institutions have filed the borrowers
n to be disclosed
he Bureau shall update and publish for information of general public within the last day of the month of Shrawan (mid-August) and of Mag

Maintaining Confidentiality
ince the information and other particulars to be exchanged between licensed institutions and the Bureau are sensitive, therefore, exchange o
oan extended against individual and corporate guarantee
Where the credit/facility extended by a licensed institution against any type of personal or corporate guarantee is not paid within the stipulate
hange in the name of shareholder
Where the blacklisted shareholders have transferred the shares to other persons and the new shareholder has accepted the liabilities and the B
he shareholder holding more than 15 percent shares of a borrower private company or a public company that has not yet made public issue
With regard to Directors nominated from Government or Semi-Government Bodies
otwithstanding anything contained in these Directives, none of the individuals nominated as a Director by this Bank, Government of Nepal
ndivided Family Members
or the purpose of these Directives, undivided family member means the concerned person's spouse, son, unmarried daughter, adopted son, u
redit Information Unit
or the purpose of carrying all works relating to the Bureau, licensed institutions shall establish a separate Unit and all functions relating to c
rroneous inclusion in the blacklist
n case an individual, firm, company or corporate body that is not liable to be included in the blacklist has been included in the blacklist by a
Membership of the Bureau
or the purpose of exchange of credit information and inclusion of defaulting borrowers in the blacklist, all licensed institutions shall compul

otwithstanding anything contained elsewhere in these Directives, Government of Nepal or bodies having fully or substantially owned by Go
pdating the statement of blacklist
he blacklist prepared by the Bureau shall have to be maintained updated.
he following provisions have been made with regard to the rights shares, preference shares, debentures and dividend to be acquired by the s
 Out of the promoter shareholders of the licensed bank and financial institution, the promoter shareholders being blacklisted by
Provided that in case the promoter shareholders of the concerned bank and financial institution makes a claim on the rights shar
In case any other bank and financial institution makes a request for payment of dividend which is payable to the borrower black
This provision shall be applicable also in case of recovery of the loans of the one’s own bank and financial institution.
n case of Promoter shares
Blacklisted Promoter Shareholder shall not participate In promoter right shares
The dividend to be received by such shareholder shall not be used for any other purpose than repayment of loan
BFI shall maintain a list of blacklisted promoter shareholders

rior Information
efore recommending for blacklisting to the CIB in respect of other BFI, prior information to such BFI shall be provided, except those menti

t and provisions relating to Actions:

the licensed institutions do not furnish the names and particulars of the borrowers liable to be blacklisted in time or found to have extended
n case any bank or financial institution extends a credit facility to any blacklisted individual, firm, company or corporate body, concerned ba
n case any bank or financial institution requiring to recommend any individual, firm, company or corporate body for inclusion in the blackli
ny outstanding amount of loan with the blacklisted individual, firm, company and corporate body shall be provided with cent percent loan l
Where such provision is not found to have been made, the concerned Chief Executive shall be punished with a fine not exceeding five hundre
Where a borrower is blacklisted through other bank or financial institution, the licensed institution may make a loan loss provision according

the promoter of licensed institution is blacklisted, loan shall not be provided to other person or entity against collateral of property of such
n Bylaws, 2001.

ereof shall compulsorily be sent to the Bureau within fifteen days.

Regional Office or branches falling under various Regional Offices amounts to Rs. 1million or more, the particulars according to Ka.Su.Fa

rm purpose in violation of the agreement and using the fund in the subsidiary companies or other firm/companies.
hundred percent shall not be necessary.

commend the valuator for placing in the blacklist.

, profit and loss accounts, cash flow statement and other financial statements.

institution shall make recommendation for release of the confiscated passport of such individuals.

the prevalent situation, extend the period by up to three months.

is not paid within that date, the concerned bank and financial institution shall compulsorily blacklist the person, firm, company or a corpora
on according to these Directives.
 The share of a Director in the non-government firm/ company/corporate body in which the representative of the blacklisted ind
The non-government firm/company /corporate body in which the representative of the blacklisted individual or institution is a D
The individual representing as a Director of the blacklisted individual or institution has resigned from the directorship or such i

us provided, such individuals shall also be included in the blacklist.

stitution may decide not to include such customer in the blacklist:-

duled or restructured subject to the Directives of this Bank, the name of such borrower shall be removed from the blacklist; Provided that th
f the credit facility is not repaid or 328 not regularized within that period, such individual, firm, company or corporate body shall also be in
s provision shall not be applicable to a person working as a Director or Executive.

ome time the borrower may repay the loan within a short period of time. The borrower shall compulsorily be included in the blacklist if the
e recommendation of the lead bank or financial institution, the Bureau shall include/remove such borrower in/out of the blacklist.
cklist only on the recommendation of the participating bank or financial institution. In such cases, it shall be deemed to be failure of the lea
the black list.

o be mentioned in the notice that if the borrower does not pay or regularize the loan within the period mentioned in the notice, it shall be lia

es. It shall be the duty of concerned licensed institutions to provide such requested information and statements.

ll be filed with Banks and Financial Institutions Regulation Department and concerned Supervision Department of this Bank. The Bureau m

aush who/which has an outstanding balance of more than 10 million rupees. The information shall also be submitted to Banks and Financial

ing payment of the amount up to the amount guaranteed by such a guarantor, the name of the guarantor shall be removed from the blacklist

rily obtain a written consent forbidding from selling or transferring the shares of the borrower company without obtaining approval of the co

gnated and information thereof shall be given to the Bureau by the licensed institution. Moreover, the Unit designated for communicating w

ors of the concerned licensed institution without maintaining any record to that effect. Individual, firm, company or corporate bodies thus re
ureau, they may acquire such rights shares, preference shares, debentures in case they are not sold/distributed to other persons/institutions o
institution shall have to make available the payment of the loan to be recovered by such institution having freeze the dividend he/she is ent

ormation reported in the inspection and supervision report of this Bank, actions may be initiated under Section 100 of Nepal Rastra Bank Ac

Bank Act, 2002, be fined equal to the amount of outstanding credit with such borrower.
iculars according to Ka.Su.Fa. No. 1 and 2 shall be submitted to the Bureau within 15 days from the close of each quarter.
n, firm, company or a corporate body issuing the cheque. If the action is not carried out, actions may be taken against the concerned bank an
entative of the blacklisted individual or institution is the Director, has to be less than 15 percent;
individual or institution is a Director, has been regular in paying principal and/or interest to the licensed institution on time or before due d
rom the directorship or such individual is removed from the post of the Director.

the blacklist; Provided that this provision shall not be applicable to a person working as a Director or Executive.
orporate body shall also be included in the blacklist.

ncluded in the blacklist if the loan is not repaid within such six months period.
 out of the blacklist.
eemed to be failure of the lead bank to 329 fulfill its obligation and such lead bank shall be liable to be taken actions pursuant to Section 10

ned in the notice, it shall be liable for blacklisting.

nt of this Bank. The Bureau may conduct such inspection/and supervision on-site by assigning its staffs or off-site by obtaining the particul

mitted to Banks and Financial Institutions Regulation Department and concerned Supervision Department of this Bank, the Office of the Co

be removed from the blacklist.

ut obtaining approval of the concerned licensed institution. The then shareholders of the borrower company that sells or transfers shares wit

ignated for communicating with the Bureau shall maintain certified records of all correspondence made between the licensed institutions an

any or corporate bodies thus removed from the blacklist shall not be deemed to have been included in the blacklist.
to other persons/institutions or forfeited according to the law in force for the time being.
eeze the dividend he/she is entitled to.

100 of Nepal Rastra Bank Act, 2002 against the concerned licensed institutions or their concerned Directors, executives, including employ
each quarter.
against the concerned bank and financial institution according to these Directives.
tution on time or before due dates; and
actions pursuant to Section 100 of Nepal Rastra Bank Act, 2002.

-site by obtaining the particulars and information in the Bureau.

his Bank, the Office of the Companies Registrar and the Securities Board. In respect of the name list of other individuals, the Bureau shall

at sells or transfers shares without such approval shall be blacklisted.

een the licensed institutions and the Bureau.

executives, including employees.
individuals, the Bureau shall provide such information on request to the general public as may be necessary with or without charging a fee.
with or without charging a fee. Moreover, it shall be mandatory for the Bureau to upload the updated list of the blacklisted persons in its web
blacklisted persons in its website.