KATHMANDU, March 22 -- Nepal Rastra Bank (NRB) has shown flexibility in taking action against bank and financial institutions (BFIs) that are not floating loans to priority sectors as required by its rules.

Issuing a new circular, the central bank deferred the date to start imposing fines to BFIs that fail to meet the directed sector lending requirement. This relaxation means BFIs, who have failed to extend minimum loan requirements in prescribed priority sectors, will face central bank's action only from mid-January.

Previously, BFIs flouting the priority sector lending requirement were subject to the NRB's fine from mid-July the previous year. The new circular has made amendment to the provision in the 'Unified Directives for 2075 (20...