All types of development banks can provide banking services through limited banking outlets from now on.
Issuing a circular, Nepal Rastra Bank (NRB) has permitted all types of development banks to open extension counters that will serve customers without having to establish a full-fledged banking branch. Earlier, only commercial banks and national level development banks were allowed to establish such outlets, which offered only payment and deposit services to the clients.
However, from now on, development banks will not have to establish branches in the areas that do not generate business to collect deposits. This will help in minimising the operation cost of the banks.
Nevertheless, development banks are only allowed to provide such services in areas where formal banking services have not been introduced. This means that NRB will not allow the banks to provide such services within Kathmandu valley, sub-metropolitan cities and municipalities.
NRB encourages financial institutions to open extension counters in areas with limited banking access instead of opening branches. Extension counters conduct limited banking services — mostly collect deposits and in some cases also act as remitters.
source: the himalayan times,7 feb 2014
LINK
Issuing a circular, Nepal Rastra Bank (NRB) has permitted all types of development banks to open extension counters that will serve customers without having to establish a full-fledged banking branch. Earlier, only commercial banks and national level development banks were allowed to establish such outlets, which offered only payment and deposit services to the clients.
However, from now on, development banks will not have to establish branches in the areas that do not generate business to collect deposits. This will help in minimising the operation cost of the banks.
Nevertheless, development banks are only allowed to provide such services in areas where formal banking services have not been introduced. This means that NRB will not allow the banks to provide such services within Kathmandu valley, sub-metropolitan cities and municipalities.
NRB encourages financial institutions to open extension counters in areas with limited banking access instead of opening branches. Extension counters conduct limited banking services — mostly collect deposits and in some cases also act as remitters.
source: the himalayan times,7 feb 2014
LINK
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