From The New York Times By JESSICA SILVER-GREENBERG and MICHAEL CORKERY July 19, 2014
Circular No. 31 on Mobilization of Deposits for Microfinance Development Banks
(enacted in 2010)
Issued by the Nepal Rastra Bank (NRB), Circular No. 31 on Mobilization of Deposits for Microfinance Development Banks of 2009/2010 allows class “D” institutions (MFDBs) to mobilize deposits. According to the circular, these institutions must earn profits for three consecutive years as certified by independent auditors, must maintain capital adequacy as fixed by the NRB, have non-performing loans that do not exceed five percent, and limit deposit mobilization from the general public at five times their primary capital.
DISCLAIMER: Due to the fact that an English translation was unavailable for this circular, information for this summary has been taken from secondary sources and not from review of the actual legal text.